In Comparing the Internal Rate of Return and Net Present

question 63

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 often 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:

Symbolic Interactionism

A sociological theory that emphasizes the role of symbols and language in the development of individual identity and social interactions.

Reflective Appraisal

A concept in social psychology referring to how individuals think others perceive them and how those perceptions affect the individual's self-view.

Looking-glass Self

A social psychological concept that suggests an individual's self-perception is influenced by how others perceive and respond to them.

Subliminally Exposed

Pertains to the exposure of individuals to stimuli below their threshold of conscious awareness, influencing behavior or perception unknowingly.