Which of the Following Statements Related to the Internal Rate

question 99

Multiple Choice

Which of the following statements related to the internal rate of return (IRR) are correct?
I.The IRR method of analysis can be adapted to handle non-conventional cash flows.
II.The IRR that causes the net present value of the differences between two project's cash flows to equal zero is called the crossover rate.
III.The IRR tends to be used more than net present value simply because its results are easier to comprehend.
IV.Both the timing and the amount of a project's cash flows affect the value of the project's IRR.

• A)I and II only
• B)III and IV only
• C)I, II, and III only
• D)II, III, and IV only
• E)I, II, III, and IV

---

Definitions:

Underlying Emotion

The fundamental feeling or affect that lies beneath an individual's immediate emotional response or expression.

Alarm Phase

The initial stage of the body's response to stress, activating the fight or flight response and preparing the body to face a threat.

Parasympathetic Division

A branch of the autonomic nervous system responsible for conserving energy and promoting restful states.

Autonomic Nervous System

The part of the nervous system responsible for control of the bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.