Which One of the Following Statements Related to the Internal

question 90

Multiple Choice

Which one of the following statements related to the internal rate of return (IRR) is correct? 

• A) The IRR yields the same accept and reject decisions as the net present value method given mutually exclusive projects. 
• B) A project with an IRR equal to the required return would reduce the value of a firm if accepted. 
• C) The IRR is equal to the required return when the net present value is equal to zero. 
• D) Financing type projects should be accepted if the IRR exceeds the required return. 
• E) The average accounting return is a better method of analysis than the IRR from a financial point of view. 

Identify historical economic theorists and their contributions.

Explain the concepts of savings, investment, and consumption.

Analyze the impact of credit availability on consumption.

Differentiate between autonomous and induced consumption.

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Definitions:

Categorical Imperative

A concept in moral philosophy developed by Immanuel Kant that acts as a universal rule, requiring individuals to act in a way they wish all others would follow.

Moral Obligations

Ethical duties or commitments that arise from principles of right and wrong behavior.

Desires

Strong feelings of wanting or wishing for something to happen or be obtained.

Maxim

A general truth, fundamental principle, or rule of conduct expressed in a concise and often pithy statement.