For Mutually Exclusive Projects the Underlying Cause of Conflicts in Ranking

question 37

Multiple Choice

For mutually exclusive projects the underlying cause of conflicts in ranking for projects by internal rate of return and net present value methods is:

• A) the reinvestment rate assumption regarding cash flows.
• B) that neither method explicitly considers the time value of money.
• C) the assumption made by the IRR method that intermediate cash flows are reinvested at the cost of capital.
• D) the assumption made by the NPV method that intermediate cash flows are invested at the internal rate of return

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Definitions:

Extraversion

A personality trait characterized by sociability, talkativeness, assertiveness, and excitement-seeking.

Individualism

A social theory valuing the freedom and independence of the individual, often over the interests or values of the community or group.

Defensive Self-esteem

A form of self-esteem that is fragile and highly sensitive to criticism, often leading to defensive or aggressive responses.

Collectivism

A cultural value that emphasizes group goals, interdependence, and the importance of community and family.