Which of the Following Is NOT Common Between the IRR

question 24

Multiple Choice

Which of the following is NOT common between the IRR and NPV methods of capital budgeting analysis?

• A)both methods include all cash flows
• B)both methods consider the time value of money
• C)both methods allow for the use of more than one discount rate
• D)both methods are based on an objective rate of return

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Definitions:

Pierre-Simon de Laplace

A French mathematician and astronomer known for his work in celestial mechanics and the formulation of Laplace's equation.

Determinism

The philosophical theory that all events, including moral choices, are completely determined by previously existing causes.

Determinism

The doctrine that all events, including moral choices, are determined by previously existing causes.

Sufficient Natural Explanatory Cause(s)

A principle in philosophy and science that holds that natural phenomena have natural causes that are adequate to fully explain them, dismissing the need for supernatural explanations.