The Internal Rate of Return (IRR) for an Investment

question 7

Multiple Choice

The internal rate of return (IRR) for an investment:

• A) Frequently results in positive net present value (NPV) on attractive projects.
• B) Generally coincides with the company's discount rate.
• C) Disregards discounted cash flows.
• D) On mutually exclusive projects may produce different project rankings than those produced by using the net present value (NPV) method.
• E) Would tend to be reduced if a company used an accelerated method of depreciation for tax purposes rather than the straight-line (SL) method.

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Definitions:

Brush Border Cells

Epithelial cells found in the intestinal lining and kidney, characterized by a densely packed layer of microvilli on their apical surface to enhance absorption.

Absorbed

The process by which substances are taken into a more condensed form or into a different medium, such as liquids being taken up by solids.

Small Molecules

Chemical substances that are not very large, typically having a low molecular weight, and often used in pharmacology and biochemistry.

Calcium

A mineral essential for human life, involved in bone formation, muscle contraction, and many other physiological processes.