You Are Considering an Investment with the Following Cash Flows

question 129

Multiple Choice

You are considering an investment with the following cash flows. If the required rate of return for this investment is 13.5 %, should you accept it based solely on the internal rate of return rule? Why or why not?

• A) yes; because the IRR exceeds the required return
• B) yes; because the IRR is a positive rate of return
• C) no; because the IRR is less than the required return
• D) no; because the IRR is a negative rate of return
• E) You cannot apply the IRR rule in this case because there are multiple IRRs.

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Definitions:

Turnover

How often employees resign from a corporation and are replaced by new staff.

Gender Stereotypes

Preconceived notions or generalized views about the attributes, characteristics, and behaviors of individuals based solely on their gender.

Observer

An individual who watches or monitors events, behaviors, or processes, often for study, research, or oversight purposes.

Age Discrimination

Prejudicial treatment or unfair practices against individuals based on their age, particularly but not exclusively in employment settings.