Which of the Following Is True Regarding the Internal Rate

question 140

Multiple Choice

Which of the following is true regarding the internal rate of return for a project?

• A) If the internal rate of return is less than the required rate of return, the project will be rejected.
• B) If the internal rate of return is equal to the required rate of return, the net present value of the project is zero.
• C) If the internal rate of return is more than the required rate of return, the project will be accepted.
• D) Managers may believe (in most cases, incorrectly) that the internal rate of return is the compounded rate of return earned by the initial investment.
• E) All of these.

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Definitions:

Self-determination Theory

A theory of motivation that emphasizes the role of three basic psychological needs - competence, autonomy, and relatedness - in fostering well-being and growth.

Autonomy

The capacity to make an informed, uncoerced decision; often discussed as a critical element of self-governance and personal freedom.

Competence

The ability of an individual to effectively perform or carry out a specific task or role to the expected standard or beyond.

Relatedness

A psychological need that involves connecting with others and feeling a sense of belonging or attachment.