Two Key Weaknesses of the Internal Rate of Return Rule

question 65

Multiple Choice

Two key weaknesses of the internal rate of return rule are the

• A)arbitrary determination of a discount rate and failure to consider initial expenditures.
• B)failure to correctly analyze mutually exclusive projects and the multiple rate of return problem.
• C)failure to consider all cash flows and the multiple rate of return problem.
• D)failure to consider initial expenditures and failure to correctly analyze mutually exclusive projects.
• E)failure to correctly analyze mutually exclusive projects and the lack of a clear-cut decision rule.

Understand the concept of correlation and its implications in experimental and observational studies.

Comprehend the distinction between descriptive and inferential statistics and their applications.

Recognize the significance of statistical significance and how it is determined.

Identify factors that can lead to bias in sampling and outcomes of research studies.