The Internal Rate of Return Is

question 31

Multiple Choice

The internal rate of return is:

• A) more reliable as a decision making tool than net present value whenever you are considering mutually exclusive projects.
• B) equivalent to the discount rate that makes the net present value equal to one.
• C) difficult to compute without the use of either a financial calculator or a computer.
• D) dependent upon the interest rates offered in the marketplace.
• E) a better methodology than net present value when dealing with unconventional cash flows.

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Definitions:

Television Set

An electronic device designed to receive broadcast signals and display them as visual images and sound.

Iconic Memory

A component of the visual memory system which includes a very brief (less than a second) retention of visual information.

Image

A representation or likeness of an object produced on a surface by light waves or captured through photography.

Echoic Memory

A component of sensory memory that holds auditory information, allowing sounds to be remembered for short periods after they are heard.