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:

Paranoid

A psychological condition characterized by irrational distrust or suspicion of others, often leading to misinterpretation of motives.

Communication

The exchange of information, ideas, feelings, and messages between individuals or groups, often aimed at achieving understanding or effecting change.

Working Relationships

The interaction dynamics between colleagues within a professional environment.

Task Environment

The immediate external elements that affect an organization's performance, including competitors, customers, and suppliers.