The internal rate of return method is not subject to the limitations of the net present value method when comparing projects with different amounts invested because:

A. The internal rate of return is expressed as a percent rather than the absolute dollar value of present value.
B. The internal rate of return is expressed as a percent rather than the accrual income method used in net present value.
C. The internal rate of return is expressed as an absolute dollar value rather than the percent of net present value.
D. The internal rate of return reflects the time value of money rather than the absolute dollar value of present value.
E. The internal rate of return is expressed as an absolute dollar value rather than the time value of money used in net present value.


Answer: A

Business

You might also like to view...

Examples of associated value include:

A) how reliably a web site stays up and running. B) product cost. C) product reliability or durability. D) the experience of dealing with the company.

Business

A Nike salesperson is informed by a retailer that ten pairs of shoes are damaged and cannot be sold. After looking at the merchandise, the salesperson determines the damage occurred during the packaging process. What should the Nike salesperson do to handle this situation?

A. Return the merchandise and provide a refund. B. Try to convince the customer to buy some new merchandise. C. Help the customer dump the unsalable inventory. D. Inform the client that these kinds of losses are common in retail business. E. Apologize to the client and state that the problem will not happen in the future.

Business

Relevant data are collected, organized, and stored on a continuous basis in marketing research

Indicate whether the statement is true or false

Business

In the absence of any specific agreements, the buyer or lessee must make payment after receipt of the goods

Indicate whether the statement is true or false

Business