A Project Manager Is Using the Internal Rate of Return

question 53

Multiple Choice

A project manager is using the internal rate of return method to make the final decision on which project to undertake.Which of these four projects has the highest internal rate of return?

• A)$25,000 initial outlay with $10,000 cash inflows during the following five years
• B)$12,500 initial outlay with $10,000 cash inflows during the following five years
• C)$25,000 initial outlay with $5,000 cash inflows during the following five years
• D)$12,500 initial outlay with $5,000 cash inflows during the following five years

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Definitions:

Alfred Binet

A French psychologist who, along with his colleague Théodore Simon, developed the first standardized test to measure intelligence.

Intelligence Test

A psychological assessment tool designed to measure cognitive abilities, IQ, and problem-solving skills.

Aptitude

A natural ability or talent for learning or skill acquisition.

Heredity

The transfer of genetic characteristics from parents to offspring through their genes.