In Capital Budgeting, a Project Is Accepted Only If the Internal

question 77

Multiple Choice

In capital budgeting, a project is accepted only if the internal rate of return equals or:

• A)exceeds the required rate of return
• B)is less than the required rate of return
• C)exceeds the net present value
• D)exceeds the accrual accounting rate of return

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Definitions:

Observation

The active acquisition of information from a primary source, using senses or instruments, to gather and record data for analysis.

Reinforcement

In behavioral psychology, it is the process of encouraging or establishing a pattern of behavior by offering rewards or positive outcomes.

Assimilation

According to Piaget, the incorporation of new events or knowledge into existing schemes.

Accommodation

In cognitive psychology, the process by which an individual adjusts their pre-existing schemas or ways of thinking in response to new information or experiences.