The Internal Rate of Return (IRR)is Simply the Return on a Project

question 159

Multiple Choice

The internal rate of return (IRR) is simply the return on a project viewed as an investment. Therefore any project whose IRR exceeds the cost of capital:

• A)should be undertaken if the company has the resources to do it.
• B)contributes to wealth because it earns more than the cost of the money used to do it.
• C)should not be undertaken because IRR isn't as good as NPV.
• D)a and b

---

Definitions:

Startle Reflex

An involuntary reaction in response to a sudden, unexpected stimulus, usually a loud noise or a sudden movement, demonstrating the body's rapid defensive mechanisms.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the growing baby and removing waste products from the baby's blood.

Reflexes

Automatic, involuntary responses to specific stimuli that enable quick reactions to potentially harmful conditions.

Neonates

Refers to newborn infants, typically those less than a month old.