Which of the Following Is NOT a Major Strength of the IRR

question 70

Multiple Choice

Which of the following is NOT a major strength of the IRR method of capital budgeting?

• A)For straight forward projects of negative cash flows followed by positive cash flows,it is consistent with the NPV method of establishing if a project is acceptable or not.
• B)The IRR method uses time value of money techniques.
• C)The IRR cutoff interest rate is arbitrary.
• D)The IRR considers opportunity costs.

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Definitions:

Complex Action Planning

The process of formulating, organizing, and executing multifaceted sets of actions towards achieving a specific goal.

Midbrain

A central part of the brainstem that plays important roles in motor movement, particularly movements of the eye, and in auditory and visual processing.

Pons

A part of the brainstem that links the medulla oblongata and the thalamus, playing a crucial role in breathing, sleep regulation, and relaying messages between different parts of the brain.

Body Temperature

A measure of the body's ability to generate and release heat, indicating its metabolic rate and a critical aspect of homeostasis.