Which of the Following Statements Concerning the Internal Rate of Return

question 100

Multiple Choice

Which of the following statements concerning the internal rate of return is false?

• A) The internal rate of return for a capital budgeting project is the same for all firms regardless of their cost of capital.
• B) A project is acceptable long as the project's internal rate of return is greater than the hurdle rate for the project.
• C) The internal rate of return is dependent on the timing of the cash flows.
• D) A project with a positive internal rate of return will always increase the value of the firm if the project is accepted.
• E) You do not need to know the required rate of return to solve for the internal rate of return.

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Definitions:

Forced Distribution Method

A performance management system where employees are ranked in groups and forced into predetermined categories, such as top, middle, and bottom performers.

Performance Improvement Plan

A formal document created to outline an employee's performance deficiencies and set goals for improvement.

HR Department

The division within an organization that is focused on activities relating to employees, including hiring, training, compensation, and compliance with labor laws.

Performance Measures

Indicators or metrics used to assess the effectiveness, efficiency, and quality of work performed by individuals or organizations.