Which of the Following Is an Advantage of the IRR

question 33

Multiple Choice

Which of the following is an advantage of the IRR?

• A)The IRR is the easiest to calculate of all the capital budgeting techniques.
• B)The IRR will always lead to a wealth-maximizing decision as long as the inputs are correct.
• C)The IRR can be calculated even if the appropriate cost of capital is unknown.
• D)Both A and B are advantages of the IRR.

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Definitions:

Saint Bartholomew's Day Massacre

A targeted group of assassinations, followed by a wave of Catholic mob violence, against the Huguenots (French Calvinist Protestants) in 1572.

Huguenots

French Protestants who followed the Reformed tradition, heavily persecuted in France before being granted rights in the Edict of Nantes in 1598.

Tithe

A tax or levy, traditionally one tenth of a person's income, paid to support the church or clergy.

Duke of Guise

A title in the French nobility, historically significant for its holders' roles in the Wars of Religion and the Catholic League in France.