When Choosing Between Projects,an Alternative to Comparing Their IRRs Is

question 21

Multiple Choice

When choosing between projects,an alternative to comparing their IRRs is:

• A)to compute the incremental IRR,which tells us the discount rate at which it becomes profitable to switch from one project to the other.
• B)to compute the incremental payback period,which tells us the number of years during which it becomes profitable to switch from one project to the other.
• C)to compute the incremental NPV,which tells us the discount rate at which it becomes profitable to switch from one project to the other.
• D)There is no alternative selection criterion to comparing IRRs.

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Definitions:

Token Economy

A behavioral modification method that involves giving tokens as rewards for desired behaviors, which can later be exchanged for various privileges or treats.

Aversive Conditioning

A type of behavioral training in which an undesired behavior is associated with an unpleasant stimulus to reduce its occurrence.

Systematic Desensitization

A therapeutic method used in psychotherapy to gradually reduce phobia, anxiety, or fear by exposing a person to the feared object or context in a controlled manner.

Dialectical Behavior Therapy

A type of cognitive-behavioral psychotherapy that emphasizes the psychosocial aspects of treatment and is particularly used for treating borderline personality disorder.