Tedder Mining Has Analyzed a Proposed Expansion Project and Determined

question 93

Multiple Choice

Tedder Mining has analyzed a proposed expansion project and determined that the internal rate of return is lower than the firm desires.Which one of the following changes to the project would be most expected to increase the project's internal rate of return?

• A)decreasing the required discount rate
• B)increasing the initial investment in fixed assets
• C)condensing the firm's cash inflows into fewer years without lowering the total amount of those inflows
• D)eliminating the salvage value
• E)decreasing the amount of the final cash inflow

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Definitions:

Psychology

The scientific study of the mind and behavior, encompassing various aspects of conscious and unconscious experience as well as thought.

Psychoanalysis

A therapeutic approach and theory of psychology developed by Sigmund Freud that emphasizes the role of unconscious factors in personality and behavior.

Extraneous Variables

Variables that influence the outcome of an experiment, other than the independent variable being tested.

Mental Processes

The internal cognitive and psychological activities of the mind such as thinking, learning, remembering, and deciding.