In Comparing the Internal Rate of Return and Net Present

question 75

Multiple Choice

In comparing the internal rate of return and net present value methods of evaluation,

• A) Internal Rate of Return is theoretically superior, but financial managers prefer Net Present Value.
• B) Financial managers prefer net present value, because it measures benefits relative to the costs.
• C) Financial mangers prefer net present value, because it is presented as a rate of return.
• D) Net Present Value is not theoretically superior, but financial mangers prefer to use it anyway.

---

Definitions:

Personal Names

Individual names given to persons to identify and differentiate them within a society, often carrying cultural, familial, or historical significance.

Self-awareness

The ability of an individual to recognize and understand their own emotions, motivations, and behaviors, as well as how they are perceived by others.

Culture-bound Syndrome

A collection of psychiatric and somatic symptoms recognized among members of a specific cultural group but largely incomprehensible to people outside that group.