The Rule for Project Acceptance Under the Internal Rate of Return

question 65

Multiple Choice

The rule for project acceptance under the internal rate of return method is that:

• A) IRR should be greater than zero.
• B) IRR should be less than zero.
• C) IRR should be greater than the hurdle rate.
• D) IRR should be less than the hurdle rate.
• E) IRR should equal the hurdle rate.

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Definitions:

Nondirective Question

A question that opens up two-way communication by beginning the question with who, what, where, when, how, or why.

Closed-Ended Question

A question format that limits respondents to a predetermined set of responses, typically "yes" or "no", facilitating straightforward answers or data gathering.

Shock Approach

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Thin-Slice Judgments

Quick assessments made based on limited information, often used in forming first impressions.