An Investment Is Acceptable If Its IRR

question 20

Multiple Choice

An investment is acceptable if its IRR:

• A) is exactly equal to its net present value (NPV).
• B) is exactly equal to zero.
• C) is less than the required return.
• D) exceeds the required return.
• E) is exactly equal to 100%.

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Definitions:

Position Power

The power or authority attributed to one's position or rank within an organization, enabling influence over others.

Leader Power

The capacity of a leader to influence the behavior of others or the course of events, often derived from varied sources such as authority, expertise, or personal attributes.

Expert Power

Expert power derives from an individual's expertise, skills, or knowledge, which can influence others' behaviors or attitudes due to the value of the expertise.

Subunits

refer to smaller, component parts or divisions within a larger organization, each focused on specific operational areas or functions.