Internal Rate of Return Is Preferable to Net Present Value

question 5

True/False

Internal rate of return is preferable to net present value because IRR employs a weighted average cost of capital discount rate that reflects potential reinvestment.

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Definitions:

Body Cavity

A hollow space within the body that houses vital organs and allows for their expansion, movement, and protection.

Gastrovascular System

A simple digestive system that has a single opening through which food is ingested and waste material is excreted, found in certain invertebrates like cnidarians and flatworms.

Flatworm

Bilaterally symmetrical invertebrate with organs but no body cavity; for example, a planarian or tapeworm.

Simple Diffusion

The movement of molecules from an area of higher concentration to an area of lower concentration without the need for energy or a carrier.