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:

Schizophrenia

A persistent psychological disorder marked by false beliefs, seeing or hearing things that are not there, chaotic speech, and deteriorated thinking abilities.

Personality Disorders

A group of mental health conditions characterized by long-lasting, rigid patterns of thought and behavior that significantly impair social, work, or other areas of functioning.

General Dysfunctions

Broad impairments in system functioning, which can be biological, social, or psychological in nature.

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The actions and reactions of individuals or groups in response to external stimuli, influenced by society and norms.