Which One of the Following Statements Related to the Internal

question 90

Multiple Choice

Which one of the following statements related to the internal rate of return (IRR) is correct? 

• A) The IRR yields the same accept and reject decisions as the net present value method given mutually exclusive projects. 
• B) A project with an IRR equal to the required return would reduce the value of a firm if accepted. 
• C) The IRR is equal to the required return when the net present value is equal to zero. 
• D) Financing type projects should be accepted if the IRR exceeds the required return. 
• E) The average accounting return is a better method of analysis than the IRR from a financial point of view. 

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Definitions:

Biological Need

Fundamental physiological requirements essential for maintaining life, such as food, water, and shelter.

Reinforcer

Any stimulus that increases the likelihood of a preceding behavior to occur again by either presenting a positive stimulus or removing a negative one.

Punisher

Anything that follows a response and weakens it or decreases the probability that it will occur.

Strengthens

To make or become stronger or more resilient, often used in the context of physical, emotional, or mental attributes.