What Is the Major Assumption in the Calculation of IRR

question 61

Multiple Choice

What is the major assumption in the calculation of IRR?

• A)IRR is more intuitive than NPV
• B)Every dollar of cash flows is reinvested at the discount rate
• C)Every dollar of cash flows is reinvested at the IRR
• D)Every dollar of cash flows is measured in real dollars

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Definitions:

Female Token

A woman in a predominantly male context or field, who may be subjected to higher visibility and performance pressure.

Male Token

A term used to describe a man who is in a minority in a predominantly female environment, often highlighting the tokenism experienced.

Workplace Experience

Refers to an individual's personal interactions, tasks, and overall journey within a professional environment or organization.

Retrospective Research

A study method that looks back at events that have already occurred, often through the analysis of existing records or data.