You Are Considering an Investment with the Following Cash Flows

question 27

Multiple Choice

You are considering an investment with the following cash flows. If the required rate of return for this investment is 13.5%,should you accept it based solely on the internal rate of return rule? Why or why not?

• A) Yes; because the IRR exceeds the required return.
• B) Yes; because the IRR is a positive rate of return.
• C) No; because the IRR is less than the required return.
• D) No; because the IRR is a negative rate of return.
• E) You can not apply the IRR rule in this case because there are multiple IRRs.

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Definitions:

Evolutionary Approaches

Theories or methods that explain various aspects of human behavior, psychology, and culture based on principles of evolutionary biology.

Drive

An innate, biologically determined urge to attain a goal or satisfy a need.

Academic Performance

The extent to which a student has achieved their short or long-term educational goals, often measured by grades or test scores.

Motivational Problems

Issues or barriers that prevent an individual from initiating or maintaining actions towards achieving goals, often affecting performance and productivity.