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:

Development Stage

A phase within a process or lifespan characterized by specific growth, progress, or changes.

Unethical

Behaviors or decisions that are morally wrong according to a widely accepted code of conduct, often violating social, professional, or legal standards.

Western Nations

Countries located in the Western hemisphere, often referring to Europe and the Americas, which share certain cultural, political, and economic characteristics.

Ethical

pertains to principles of morally good conduct, involving considerations of right and wrong behavior in human actions, particularly in business and professional settings.