The Internal Rate of Return for a Project Will Increase

question 3

Multiple Choice

The internal rate of return for a project will increase if:

• A) the initial cost of the project can be reduced.
• B) the total amount of the cash inflows is reduced.
• C) each cash inflow is moved such that it occurs one year later than originally projected.
• D) the required rate of return is reduced.
• E) the salvage value of the project is omitted from the analysis.

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Definitions:

Polysaccharide

A carbohydrate molecule composed of long chains of monosaccharide units bound together by glycosidic linkages.

Monosaccharides

Monosaccharides are the simplest form of carbohydrates consisting of a single sugar molecule, such as glucose and fructose.

Disaccharide

A sugar molecule composed of two monosaccharides joined together, examples include sucrose and lactose.

Nucleic Acids

Large biological molecules essential for all known forms of life, including DNA and RNA, which carry genetic information.