The NPV Method Is the Preferred Method Over IRR for Selecting

question 78

Multiple Choice

The NPV method is the preferred method over IRR for selecting projects because ________.

• A) its result is expressed in dollars and management can make an assessment as to its financial impact on the value of the business
• B) it accounts for the time value of money better than IRR
• C) it assumes that cash flows are reinvested at the internal rate of return for each and every year of the useful life
• D) it gives a project ranking consistent with that of IRR

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Definitions:

Prenatal Stage

The period of development occurring before birth, from conception to the onset of labor, crucial for healthy fetal development.

Zygote

is the initial cell formed when a new organism is produced by sexual reproduction, resulting from the union of an egg and a sperm cell.

Spontaneously Aborted

A term used in medical contexts to describe a miscarriage that occurs naturally without medical intervention.

Prenatal Environmental Influences

Factors in the environment affecting the development of an embryo or fetus before birth, including nutrition, stress, and exposure to toxins.