In Comparing the Internal Rate of Return and Net Present

question 57

Multiple Choice

In comparing the internal rate of return and net present value methods of evaluation, ________.

• A) internal rate of return is theoretically superior, but financial managers prefer net present value
• B) net present value is theoretically superior, but financial managers prefer to use internal rate of return
• C) financial managers prefer net present value, because it is presented as a rate of return
• D) financial managers prefer net present value, because it measures benefits relative to the amount invested

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Definitions:

Major Argument

A key or central point made in a discussion, debate, or piece of writing that supports the main conclusion or proposition.

Occupational Segregation

The division of labor based on demographic characteristics, such as gender or ethnicity, resulting in unequal job distribution.

Employment Discrimination

An illegal practice where individuals are unfairly treated or not given equal opportunities in the workplace based on characteristics such as race, gender, age, or religion.

African Americans

A racial or ethnic group in the United States with origins in any of the Black racial groups of Africa.