An Internal Rate of Return Greater Than the Cost of Capital

question 58

True/False

An internal rate of return greater than the cost of capital guarantees that the firm earns at least its required return. Investing in such an project would enhance the market value of the firm and therefore the wealth of its owners.

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Definitions:

Self-actualization

A concept in humanistic psychology representing the realization of one's potential and self-fulfillment as the highest expression of a person's ability.

Maslow

He theorized that people are motivated to achieve certain needs and that some needs take precedence over others, starting with physiological needs and ending with self-actualization.

Self-actualizers

Individuals who achieve their highest potential in their own unique way, fulfilling what Abraham Maslow termed self-actualization.

Emotionally Healthy People

Individuals who exhibit a high level of emotional intelligence, including awareness, control, and expression of emotions in a balanced and constructive manner.