What Is the Decision Rule in the Case of Sign

question 111

Multiple Choice

What is the decision rule in the case of sign changes that produce multiple IRRs for a project?

• A) Select the lowest IRR to be conservative
• B) Select the highest IRR to maximize the benefits
• C) Any or all of the IRRs are justified to use
• D)Evaluate the project according to NPV

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Definitions:

Temporal Method

A method of currency translation in accounting where foreign currency balances are translated to the reporting currency using exchange rates depending on the timing of the original transaction.

Brazil Reals

The official currency of Brazil, denoted as BRL and symbolized as R$.

Temporal Method

An exchange rate conversion method that uses specific rates depending upon the timing of the original acquisition of assets and liabilities.

Total Assets

The sum of all resources owned by a company, including cash, investments, property, and other financial assets reflected on the balance sheet.