When Using the Internal Rate of Return (IRR)investment Rule,we Compare

question 54

Multiple Choice

When using the internal rate of return (IRR) investment rule,we compare:

• A)the average return on the investment opportunity to returns on all other investment opportunities in the market.
• B)the average return on the investment opportunity to returns on other alternatives in the market with equivalent risk and maturity.
• C)the NPV of the investment opportunity to the average return on the investment opportunity.
• D)the average return on the investment opportunity to the risk-free rate of return.

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Definitions:

Organizational Climate

The shared perceptions and attitudes about an organization that influence members' motivation and behavior.

Manager

A person responsible for controlling or administering an organization or group of staff, making decisions, and ensuring that goals are met.

Status

The relative social, professional, or other standing of someone or something, often compared to others within a given context.

Conformity

The behavior of aligning one's beliefs, attitudes, and actions with those of a group or society's standards and norms.