Net Present Value (NPV) Is Usefully Supplemented by Internal Rate

question 4

True/False

Net present value (NPV) is usefully supplemented by internal rate of return (IRR), since IRR gives a good indication of the sensitivity of any decision made to changes in the discount rate.

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Definitions:

Salivate

The secretion of saliva in the mouth by the salivary glands, often in response to the sight, smell, or taste of food.

Elicits

To draw out or bring forth a response or answer through various means.

UCS

Unconditioned Stimulus; in classical conditioning, it is something that naturally and automatically triggers a response without any learning needed.

UCR

stands for Unconditioned Response, an automatic and natural reaction to an unconditioned stimulus, not learned or conditioned.