When a Project's Internal Rate of Return Equals the Discount

question 12

Multiple Choice

When a project's internal rate of return equals the discount rate,

• A)A manager has probably manipulated the analysis
• B)The net present value is zero
• C)The discount rate is equal to the industry average
• D)None of these answer choices are correct

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Definitions:

Role Expectations

The anticipated behaviors and actions associated with a particular social position or status.

Situational Attribution

The process of attributing someone's behavior to external factors, such as the environment or circumstances, rather than to internal personality traits.

Dispositional Attribution

The tendency to attribute people’s behaviors to their inner characteristics such as personality, beliefs, or attitudes.

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting beliefs, ideas, or values at the same time.