A Project Will Have More Than One IRR If

question 49

Multiple Choice

A project will have more than one IRR if:

• A)the IRR is positive.
• B)the IRR is negative.
• C)the NPV is zero.
• D)the cash flow pattern exhibits more than one sign change.
• E)the cash flow pattern exhibits exactly one sign change.

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Definitions:

Ethnocentrism

The belief that one’s ethnic group is more normal than others; an emotional source of prejudice because of people’s gut-level feelings about how right their group is—and, in turn, how wrong they think other groups are.

Attitudes

Mental states or orientations that reflect the evaluations, feelings, and propensities toward aspects of our environment, such as people, objects, and ideas.

Institutional Prejudice

Prejudice that is caused by policies in the workplace that are not intentionally set to exclude members of specific groups or to treat them differently, but which have that effect anyway.

Groupthink

A psychological phenomenon occurring within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.