What Are the Three Reasons Why IRR Is Used More

question 27

Multiple Choice

What are the three reasons why IRR is used more than NPV?

• A) It is thought (wrongly) to give a better ranking.
• B) It results in more projects being accepted.
• C) It can be calculated without cost of capital.
• D) A psychological preference for a percentage

Understand the principles and strategies for delivering bad news in business communications.

Identify and utilize various formats (direct and indirect) for communicating bad news.

Recognize the importance and components of an effective apology in a professional setting.

Demonstrate the ability to craft effective buffers in preparing the reader for bad news.

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Definitions:

Substitution Effect

The substitution effect occurs when consumers replace more expensive items with less costly alternatives.

Income Effect

A change in the quantity demanded of a good or service as a result of a change in real income (purchasing power).

Inferior Good

A type of good for which demand declines as the income of individuals or the economy increases, opposite to normal goods.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute a cheaper good for a more expensive one.