The Internal Rate of Return Tends to Be

question 53

Multiple Choice

The internal rate of return tends to be:

• A)easier for managers to comprehend than the net present value.
• B)extremely accurate even when cash flow estimates are faulty.
• C)ignored by most financial managers.
• D)used primarily to differentiate between mutually exclusive projects.
• E)utilized in project analysis only when multiple net present values apply.

---

Definitions:

Class

A group of individuals or objects that share common characteristics or attributes.

Rule 10b-5

A regulation under the U.S. Securities Exchange Act that prohibits fraud, misrepresentation, and deceit in the sale of securities.

1933 Act

Officially known as the Securities Act of 1933, it's a U.S. law enacted to ensure transparency in financial statements so investors can make informed decisions about securities.

1934 Act

The Securities Exchange Act of 1934, a U.S. federal law that regulates the secondary trading of securities (stocks, bonds, and debentures) in the United States, established to increase transparency and reduce fraud.