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.

---

Definitions:

Psychological Tension

A state of mental or emotional strain resulting from demanding circumstances.

Posttraumatic Stress Disorder

A psychiatric disorder that occurs in people who have experienced or witnessed a traumatic event and exhibit symptoms such as flashbacks, nightmares, and severe anxiety.

Depressive Disorders

A group of conditions characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Persistent Sad

A prolonged state of sadness that may indicate a mood disorder or depression.