Which of These Statements About Internal Rate of Return Analysis

question 49

Multiple Choice

Which of these statements about internal rate of return analysis is BEST?

• A)If the IRR is less than the company's required rate of return,the project is worth funding.
• B)Projects having lower IRR are generally superior to those having higher IRR.
• C)IRR and NPV calculations always make the same investment recommendations.
• D)If net outflows follow a period of net inflows,IRR may give conflicting results.

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Definitions:

Globalization

The process of interaction and integration among people, companies, and governments worldwide, often leading to an exchange of ideas, products, and culture.

Industrialization

The process of transforming economies from primarily agricultural to one based on the manufacturing of goods, characterized by technological innovation and increased productivity.

Industrialized West

Refers to Western countries that have undergone industrialization, characterized by economic development, advanced technology, and a shift from agricultural to manufacturing and service industries.