Which of the Following Is True of the Internal Rate

question 12

Multiple Choice

Which of the following is true of the internal rate of return of a project?

• A) The discounted cash flow estimates are only as accurate as the original estimates of the profit.
• B) It maximizes the net present value of the investment.
• C) It neglects the timing of investment and cash flows.
• D) It does not discriminate against projects that are long term or risky.

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Definitions:

Appropriate Death

A person dying as he or she wished to die. The death is generally consistent with past personality patterns.

Anorexia

An eating disorder characterized by an intense fear of gaining weight, leading to severe food restriction and weight loss, often associated with a distorted body image.

Cancer

A disease characterized by the uncontrolled division of abnormal cells in a part of the body, potentially leading to tumors, spread to other areas, and various health challenges.

Lack

The state of being without or not having enough of something.