The Internal Rate of Return of a Project Is the Rate

question 54

Multiple Choice

The internal rate of return of a project is the rate of return that equates the present value of its net cash flows with its:

• A)outflow.
• B)working capital.
• C)initial cash outlay.
• D)required rate of return.

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Definitions:

Semantics

The branch of linguistics and logic concerned with meaning, including the relations between signs and what they denote.

Dissonance Theory

A psychological model proposing that inconsistency among beliefs, attitudes, or behaviors creates discomfort leading to an alteration in one of them to reduce the dissonance.

Allness

A communicative error assuming one knows all there is to know about a particular subject, therefore oversimplifying complex entities or experiences.

Words Are Arbitrary

The concept that the meanings attached to words are not inherently linked to their phonetic expressions but are agreed upon by users of the language.