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:

Attributional Style

The way an individual typically explains the causes of personal and other events, focusing on internal vs. external, stable vs. unstable, and global vs. specific explanations.

Self-Presentational Motivation

The drive to control how one is perceived by others, often leading to behaviors aimed at creating a favorable image.

Impression Management

The process by which individuals attempt to control the impressions others form of them, especially in social interactions.

Self-Control

The ability to regulate one's emotions, thoughts, and behaviors in the face of temptations and impulses.