The Internal Rate of Return Tends to Be

question 42

Multiple Choice

The internal rate of return tends to be:

• A) easier for managers to comprehend than the net present value.
• B) extremely accurate even when cash flow estimates are faulty.
• C) ignored by most financial analysts.
• D) used primarily to differentiate between mutually exclusive projects.

---

Definitions:

Methodological Behaviorist

A psychologist who studies behavioral responses in a systematic and observable manner, emphasizing the importance of environmental stimuli and conditions.

Intervening Variables

Factors within a study that mediate the relationship between the independent and dependent variables, potentially influencing the outcome.

UCS

Unconditioned Stimulus, a stimulus that naturally and automatically triggers a physiological reflex or emotional response without prior learning.

UCR

Unconditioned response, a natural and automatic reaction to an unconditioned stimulus without prior learning or conditioning.