When Evaluating Projects Using Internal Rate of Return

question 150

Multiple Choice

When evaluating projects using internal rate of return,

• A) projects having lower early-year cash flows tend to be preferred at higher discount rates.
• B) projects having higher early-year cash flows tend to be preferred at higher discount rates.
• C) projects having higher early-year cash flows tend to be preferred at lower discount rates.
• D) the discount rate and magnitude of cash flows do not affect internal rate of return.

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Definitions:

Calmodulin

A calcium-binding messenger protein present in all eukaryotic cells, involved in various cellular processes by interacting with other proteins.

Phospholipid Second Messengers

Molecules derived from phospholipids that act within cells to transmit signals from a variety of receptors to their target molecules.

Thyroid Gland

An endocrine gland that lies anterior to the trachea and releases hormones that regulate the rate of metabolism.

TSH

Thyroid-stimulating hormone, a pituitary hormone that stimulates the thyroid gland to produce thyroid hormones.