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:

NAACP

The National Association for the Advancement of Colored People, a civil rights organization in the United States formed in 1909 to fight prejudice, lynching, and Jim Crow segregation.

Gunnar Myrdal

A Swedish economist and sociologist known for his pioneering work on economic theory and racial relations in America.

American Dilemma

A term often used to describe the conflict and contradiction between the ideals of democracy and freedom, and the reality of segregation and racial discrimination in the United States.

Racial Policies

Strategies and laws implemented by a government or organization concerning individuals of different races, often affecting their rights and social standing.