The Internal Rate of Return Method Assumes That the Cash

question 99

Multiple Choice

The internal rate of return method assumes that the cash flows over the life of the project are reinvested at:

• A)the risk-free rate
• B)the firm's cost of capital
• C)the computed internal rate of return
• D)the market capitalization rate

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Definitions:

Extinction

In psychology, the gradual weakening and disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Neutral Stimulus

A neutral stimulus is something in the environment that initially does not elicit any intrinsic response until it is paired with an unconditioned stimulus.

Conditioned Stimulus

An initially neutral signal that, once it is linked with a natural stimulus, eventually elicits a learned response.

Pavlov

Ivan Pavlov, a Russian physiologist known primarily for his work in classical conditioning, particularly experiments with dogs leading to the concept of the conditioned reflex.