The Internal Rate of Return Is Unreliable as an Indicator

question 28

Multiple Choice

The internal rate of return is unreliable as an indicator of whether or not an investment should be accepted given which one of the following?

• A)One of the time periods within the investment period has a cash flow equal to zero.
• B)The initial cash flow is negative.
• C)The investment has cash inflows that occur after the required payback period.
• D)The investment is mutually exclusive with another investment of a different size.
• E)The cash flows are conventional.

---

Definitions:

mRNA Transcript

A single-stranded RNA molecule that is complementary to one of the DNA strands of a gene, serving as a template for protein synthesis in the process of translation.

Transcription

The process by which the genetic information in DNA is copied to messenger RNA, preceding protein synthesis.

DNA Methylation

A biochemical process where a methyl group is added to the DNA molecule, often affecting gene expression without altering the sequence.

Transcriptional Regulation

The mechanisms and controls that govern the conversion of DNA to RNA, influencing gene expression levels.