Net Present Value Is Preferred to Internal Rate of Return

question 86

Multiple Choice

Net present value is preferred to internal rate of return for capital budgeting decisions because

• A) the internal rate of return does not allow you to determine if the project is acceptable.
• B) the net present value is the only method that allows you to determine which independent project is acceptable.
• C) the net present value allows you to compare mutually exclusive projects.
• D) the internal rate of return for a project is different for each firm.
• E) NPV contains information about a projects "safety margin" which is not inherent in IRR.

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Definitions:

National Party Conventions

Large meetings where political parties nominate their presidential and vice-presidential candidates, adopt a platform, and unify party members ahead of a national election.

Televised Spectacle

Events or activities that are made visually striking and grandiose primarily for television audiences, often to capture attention or boost ratings.

System of 1896

Refers to the political realignment that occurred after the 1896 U.S. presidential election, leading to a period of Republican dominance in national politics.

Working Class Voters

Individuals who are typically part of the socioeconomic group that performs manual labor or industrial work and who may vote in ways that reflect their economic interests and concerns.