The Internal Rate of Return Is

question 50

Multiple Choice

The internal rate of return is:

• A)more reliable as a decision making tool than net present value whenever you are
• Considering mutually exclusive projects.
• B)equivalent to the discount rate that makes the net present value equal to one.
• C)difficult to compute without the use of either a financial calculator or a computer.
• D)dependent upon the interest rates offered in the marketplace.
• E)a better methodology than net present value when dealing with unconventional cash
• flows.

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Definitions:

Information Quantity

The amount of data or details available in a message or communication, which can affect understanding, decision-making, and information processing efficiency.

Accurate Knowledge

Information or data that is precise, correct, and true to the facts without errors or distortions.

Lay Epistemology

The ways in which ordinary people come to understand and make sense of knowledge and reality, often influencing their judgments and decisions.

Social Cognition

The study of how people process, store, and apply information about themselves and others in social situations.