The Internal Rate of Return for a Project Will Increase

question 3

Multiple Choice

The internal rate of return for a project will increase if:

• A) the initial cost of the project can be reduced.
• B) the total amount of the cash inflows is reduced.
• C) each cash inflow is moved such that it occurs one year later than originally projected.
• D) the required rate of return is reduced.
• E) the salvage value of the project is omitted from the analysis.

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Definitions:

Title

Legal ownership of property, including the rights to use, possess, and transfer the property.

U.S. Constitution

The foundational legal document establishing the framework of the federal government and outlining the rights of American citizens.

Private Property

Land or possessions owned by individuals or corporations rather than by the government or public as a whole.

Public Use

Utilization of land or property by the general public or government entities, often a criterion in eminent domain cases.