Which of the Following Is an Advantage of the Internal

question 30

Multiple Choice

Which of the following is an advantage of the internal rate of return method?​

• A) It takes into account cash flows occurring only till the time the initial investment is completely paid back.
• B) It does not use present value concepts in valuing cash flows occurring in different periods because this concept can give incorrect results.
• C) It ranks proposals based upon the cash flows over their complete useful life, even if the project lives are not the same.
• D) ​It assumes the cash received from a proposal can be reinvested at the minimum desired rate of return.

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Definitions:

Categories of Behaviors

Classifications or groupings of actions or reactions of individuals according to certain criteria or based on observed patterns.

Basic Anxiety

A term introduced by Karen Horney, referring to feelings of helplessness and insecurity that arise from early childhood experiences, influencing adult behavior.

Lonely

A complex and usually unpleasant emotional response to isolation or lack of companionship.

Helpless

A state of lacking the power or ability to act effectively or to control one's own situation, often resulting from adverse circumstances or psychological conditions.