A Financing Project Is Acceptable If Its Internal Rate of Return

question 65

Multiple Choice

A financing project is acceptable if its internal rate of return is:

• A)exactly equal to its net present value.
• B)exactly equal to zero.
• C)greater than the discount rate.
• D)less than the discount rate.
• E)negative.

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Definitions:

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body goes through when exposed to stress.

Major Life Events

Significant occurrences in a person's life that have the capacity to alter the course of life significantly, often requiring considerable adjustment.

Catastrophes

Extreme and sudden disasters or events causing significant damage or suffering.

Hassles

Hassles are minor irritations or annoyances that individuals encounter in everyday life, which can accumulate and contribute to overall stress.