The Internal Rate of Return Is

question 31

Multiple Choice

The internal rate of return is:

• A) more reliable as a decision making tool than net present value whenever you are considering mutually exclusive projects.
• B) equivalent to the discount rate that makes the net present value equal to one.
• C) difficult to compute without the use of either a financial calculator or a computer.
• D) dependent upon the interest rates offered in the marketplace.
• E) a better methodology than net present value when dealing with unconventional cash flows.

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Definitions:

Sleeper Effects

Teratogenic outcomes or effects that are not visible until many years later.

Teratogens

Agents or factors that can cause malformation of an embryo or fetus during prenatal development.

Developing Countries

Nations with low to moderate industrialization and lower living standards, often marked by lower levels of income, education, and health care.

Developmental Disabilities

A diverse group of chronic conditions that are due to mental or physical impairments that arise before adulthood.