What Is the Quantitative Decision Rule for the Internal Rate

question 80

Multiple Choice

What is the quantitative decision rule for the internal rate of return method?

• A) Accept investments whose return on investment exceeds the accounting rate of return.
• B) Accept investments whose weighted average cost of capital exceeds the return on investment.
• C) Accept investments whose required rate of return exceeds the internal rate of return.
• D) Accept investments whose internal rate of return exceeds the required rate of return.

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Definitions:

Reinforcement

In psychology, a process by which a behavior is strengthened or increased in frequency, often through the application of a reward or the removal of a negative stimulus.

Enforced Commitment

The obligation or dedication imposed by external factors or authorities.

Social Loafing

Individuals often put in less effort when part of a group compared to when they work by themselves.

Duplication of Effort

A situation where multiple people or groups are unknowingly working on the same task or problem, leading to a waste of resources.