Managers Prefer Projects with Higher IRRs to Projects with Lower

question 127

True/False

Managers prefer projects with higher IRRs to projects with lower IRRs, if all other things are equal.

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Definitions:

Interest

Money paid at a particular rate for the use of borrowed money, or the right or share someone has in a given asset or wealth.

Fee Simple

The most complete ownership interest one can have in real property, with the absolute right to use it, dispose of it, and inherit it, subject only to government restrictions.

Joint Tenants

A form of co-ownership where two or more persons hold equal shares of a property, with a right of survivorship if one owner dies.

Life Estate

An interest in land ending at death of the estate holder.