Which One of the Following Will Occur When the Internal

question 77

Multiple Choice

Which one of the following will occur when the internal rate of return equals the required return?

• A)The average accounting return will equal 1.0.
• B)The profitability index will equal 1.0.
• C)The profitability index will equal 0.
• D)The net present value will equal the initial cash outflow.
• E)The profitability index will equal the average accounting return.

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Definitions:

Locus of Control

A psychological concept referring to an individual's belief about the extent of control they have over events in their lives, which can be internal (believing they have control) or external (believing that outside forces have control).

Negative Affectivity

Propensity to view the world, including oneself and other people, in a negative light.

Type A Behaviour

A personality trait characterized by high levels of competitiveness, self-imposed stress, impatience, and a constant sense of urgency.

Self-Esteem

An individual's subjective evaluation of their own worth and capabilities.