The Internal Rate of Return Should

question 12

Multiple Choice

The internal rate of return should:

• A) Not be used for ranking mutually exclusive projects.
• B) Only be applied to small projects.
• C) Be relied upon more heavily than the net present value.
• D) Always result in the same decision as discounted payback.
• E) Lead to correct decisions when comparing mutually exclusive projects.

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Definitions:

Relationship

Relates to the way in which two or more people or things are connected, or the state of being connected.

Social Psychologists

Professionals who study how individuals think, feel, and behave in social contexts.

Decision

A decision is a conclusion or resolution reached after consideration, involving choices between different courses of action or inaction.

Reactance Theory

A psychological theory suggesting that when people feel their freedom to choose is restricted, they may rebel against the restriction, often by doing the opposite of what is desired.