The IRR Is Defined as

question 44

Multiple Choice

The IRR is defined as

• A)the discount rate that makes a project's NPV equal to zero.
• B)the difference between the cost of capital and the present value of the cash flows.
• C)the discount rate used in the NPV method.
• D)the discount rate used in the discounted payback period method.

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Definitions:

Predictive Signal

An indication or sign that precedes and suggests the probable occurrence of a future event or outcome.

Surprise

An emotional and cognitive response to unexpected events or information.

Classical Conditioning

An acquisition of knowledge approach where two stimuli are regularly coupled; a behavior that at the outset is triggered by the second stimulus becomes, over time, elicited by the first stimulus alone.

Blocking

A learning phenomenon where an already established association to a stimulus inhibits the formation of an association to a new stimulus.