The Internal Rate of Return

question 38

Multiple Choice

The internal rate of return: 

• A) may produce multiple rates of return when cash flows are conventional. 
• B) is best used when comparing mutually exclusive projects. 
• C) is rarely used in the business world today. 
• D) is principally used to evaluate small dollar projects. 
• E) is easy to understand. 

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Definitions:

Genetic Disorder

A disease or condition caused by an abnormality in an individual's DNA, potentially inherited from parents or resulting from mutations.

Intense Hunger

A strong, overwhelming desire or need to eat.

Reduced Rates of Metabolism

A slower-than-normal rate at which the body converts food and oxygen into energy.

Bulimia Nervosa

A serious eating disorder marked by binging, followed by methods to avoid weight gain.