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:

Excitatory Postsynaptic Potential

An excitatory postsynaptic potential (EPSP) is a temporary increase in membrane potential in a postsynaptic neuron, making it more likely to fire an action potential, usually in response to neurotransmitter release.

Neuronal Membrane

The cell membrane surrounding a neuron, which controls the movement of substances in and out of the cell and facilitates electrical signaling.

Saltatory Conduction

Fast propagation of an action potential at successive nodes of Ranvier; saltatory means “leaping.”

Nodes Of Ranvier

Gaps in the myelin sheath around nerve fibers where the axon is exposed and action potentials are regenerated.