If Project a Has a Lower Internal Rate of Return

question 5

Multiple Choice

If project A has a lower internal rate of return than project B, then project A will have a

• A) lower NPV and a shorter payback period.
• B) higher NPV and a longer payback period.
• C) lower NPV and a longer payback period.
• D) higher NPV and a shorter payback period.

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, which outlines a five-tier model of human needs, ranging from basic physiological needs to self-actualization.

Universal Needs

Universal needs refer to basic human requirements that are common across different cultures and societies, such as food, shelter, safety, love, and esteem.

Culture

A complex system of shared values, traditions, norms, customs, arts, history, folklore, and institutions that characterizes a particular group or society.

McClelland's Model

A psychological theory which states that the needs for achievement, power, and affiliation significantly influence human motivation and behavior.