The Net Present Value Method of Project Evaluation Is Preferred

question 14

Multiple Choice

The net present value method of project evaluation is preferred to the internal rate of return method because:

• A)the internal rate of return method may give multiple rates of return or zero rates of return in some cases,but not for mutually exclusive projects.
• B)the internal rate of return method may give an inconsistent ranking due to the magnitude or timing of cash flows.
• C)most projects are independent rather than mutually exclusive.
• D)the internal rate of return method yields net present value profiles that do not intersect for mutually exclusive projects.

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Definitions:

Constructivism

A theory of learning that emphasizes the role of individuals in constructing their own understanding and knowledge of the world, through experiencing things and reflecting on those experiences.

Critical Realist

An advocate or adherent of critical realism, a philosophical approach that believes the nature of reality is independent of human thoughts and beliefs but that our understanding of it is socially constructed.

Accuracy of Personality Judgments

The degree to which assessments or perceptions of others' personalities are consistent with their actual behavior and self-reports.

Realistic Accuracy Model

A psychological framework positing that accurate judgment of others' personalities is based on relevance, availability, detection, and utilization of behavioral information.