A Manager Will Prefer the IRR Rule Over the NPV

question 44

Multiple Choice

A manager will prefer the IRR rule over the NPV rule if the manager:

• A) Prefers to talk in terms of rates of return.
• B) Can accurately forecast future cash flows.
• C) Dislikes the discounted payback analysis.
• D) Also prefers use of payback analysis.
• E) Is considering mutually exclusive projects.

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Definitions:

Jurisdiction

The official power to make legal decisions and judgments, often within a specific geographical area or over particular types of cases.

Probate Court

A specialized judicial body that handles matters pertaining to wills, estates, and the distribution of a deceased person's assets.

Deceased Person's Estate

All the assets and liabilities left by an individual after death, which are subject to management and distribution.

District Courts

Lower federal courts where most federal legal cases begin, handling a broad range of civil and criminal cases.