A Project's IRR Is the Interest Rate That

question 70

Multiple Choice

A project's IRR is the interest rate that

• A) causes the project's NPV to equal zero.
• B) is used to discount cash flows when computing the project's NPV.
• C) is used to determine which one of two mutually exclusive projects should be accepted.
• D) is used to compute the project's discounted payback period.

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Definitions:

Motion Parallax

A depth cue in which objects closer to the observer move faster across the visual field than objects farther away, giving a sense of depth and distance.

Figure Ambiguity

The quality of an image or representation that leads to multiple interpretations due to its unclear form.

Interposition

A visual cue in depth perception where one object partly covers another, indicating that the former is closer to the viewer than the latter.

Relative Size

An aspect of visual perception that allows one to judge the size of an object in relation to other objects within the same field of view.