The Relationship Between NPV and IRR Is Such That ____

question 81

Multiple Choice

The relationship between NPV and IRR is such that ____.

• A) both approaches always provide the same ranking of alternative investment projects
• B) the IRR of a project is equal to the firm's cost of capital if the NPV of a project is $0
• C) if the NPV of a project is negative, the IRR must be greater than the cost of capital
• D) None of these are correct

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Definitions:

Changing Criterion Design

This design involves systematically altering the criterion for reinforcement or success as the subject's behavior gradually approximates the target behavior.

Changing Conditions Design

A research design used in behavioral science to assess the effects of interventions under varying conditions or environments over time.

Carryover Effects

The continuation of a behavior change or learning from one situation or condition to another.

Stepwise Modification

A methodical approach to changing behavior or processes through small, incremental adjustments rather than drastic changes.