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:

True Ribs

The upper seven pairs of ribs that are directly attached to the sternum by their costal cartilages, providing protection to the thoracic cavity.

Sternum

A long flat bone located in the center of the chest, which connects to the ribs via cartilage and protects vital organs like the heart and lungs.

Attach Directly

Refers to a way in which structures, such as muscles or ligaments, connect with other structures without intermediaries.

Vertebral Foramen

The central opening or hole in each vertebra of the spine through which the spinal cord passes.