Register
The internal rate of return: Multiple Choice a. may produce multiple rates of return when cash flows are conventional. b. is best used when comparing mutually exclusive projects. c. is rarely used in the
95.4k views
5 votes
The internal rate of return: Multiple Choice

a. may produce multiple rates of return when cash flows are conventional.
b. is best used when comparing mutually exclusive projects.
c. is rarely used in the business world today.
d. is principally used to evaluate small dollar projects.
e. is the most popular evaluation techinque.

User CodingInMyBasement
by
5.1k points

1 Answer

3 votes

Answer: Option C

Explanation: Internal rate of return is used less in common business world as the most popular measure is the net present value which shows how much profit will a company make by choosing to do a project.

IRR produce different results for unconventional cash flows and NPV is used for evaluating mutually exclusive projects. IRR shows the rate of return from the investment but is vague as the overall result is shown by the net present value.

User Talha Anwar
by
4.9k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.8m questions

7.5m answers

Other Questions

_____ reminds customers and clients that they made a good choice in selecting a company with which to do business, or it reminds them of the good qualities of their purchase.​
On august 1 the darius co. purchased a photocopy machine for $8,000. the estimated annual depreciation on the machine is $1,680. if the company prepares annual financial statements on december 31, the
When president obama was elected, the u.s. economy was in trouble, and has slid into a recession. consumer spending was low and getting worse. in an effort to stop the decline, president obama proposed
Ensuring that an individual is who they claim to be is the function of _____. select one: a. confidentiality b. authorization c. availability d. authentication e. nonrepudiation
The current market price for good y is above the equilibrium price, and then the price of a subsitute good, x, increases. the demand curve for good y shifts as a result. what is the likely outcome of the
Link Copied!