Two Key Weaknesses of the Internal Rate of Return Rule

question 9

Multiple Choice

Two key weaknesses of the internal rate of return rule are the

• A)arbitrary determination of a discount rate and failure to consider initial expenditures.
• B)failure to correctly analyze mutually exclusive projects and the multiple rate of return problem.
• C)failure to consider all cash flows and the multiple rate of return problem.
• D)failure to consider initial expenditures and failure to correctly analyze mutually exclusive projects.
• E)failure to correctly analyze mutually exclusive projects and the lack of a clear-cut decision rule.

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Definitions:

Personality Disorders

A group of mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating from those accepted by the individual's culture.

Big Five

A personality model that describes human personality traits in five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Schizotypal

A disorder or personality type characterized by abnormal social behaviors and thoughts, often including odd or eccentric manners of speaking or dressing.

Personality Disorder

A pattern of thought, feeling, and behavior that goes beyond the normal range of and causes problems for the affected individual or for others.