Which of the Following Is the Appropriate IRR Rule

question 6

Multiple Choice

Which of the following is the appropriate IRR rule?

• A)When there are multiple IRRs,select the one with the smallest IRR.
• B)When there are multiple IRRs,select the one with the largest IRR.
• C)In the absence of constraints,a project with a delayed cash flow stream should be adopted only if its IRR is less than the hurdle rate.
• D)In the absence of constraints,a project with an early cash flow stream should be adopted only if the hurdle rate exceeds the IRR of the project.

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Definitions:

Solution

A homogeneous mixture of two or more substances in which the solute is completely dissolved in the solvent.

Communist Economic System

An economic model where all means of production are owned by the community as a whole, aiming for a classless society where goods are distributed based on need.

State Ownership

Refers to the government control or ownership of businesses or assets.

Corporations

Legal entities that are separate from their owners, capable of owning property, entering contracts, and being held liable, often formed to conduct business.