The IRR of a Project Whose Cash Flows Accrue Relatively

question 55

True/False

The IRR of a project whose cash flows accrue relatively rapidly is more sensitive to changes in the discount rate than is the IRR of a project whose cash flows come in more slowly.

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Definitions:

Expressed Agency

An agency created in a written or oral agreement. Also called agency by agreement.

Principal

The main party to a transaction, such as a buyer or seller in a contract, or an individual who empowers another (agent) to act on their behalf.

Contract Authority

A power granted to an individual or entity to enter into legally binding agreements on behalf of another person or entity.

Principal Duties

are the main responsibilities or tasks that an individual or entity is expected to perform as part of a job role or contractual agreement.