Author Question: A general rule in capital budgeting is that a project is accepted only if the internal rate of ... (Read 68 times)

student77 · **on:** Mar 6, 2021

Question 1

A "what-if" technique that examines how a result will change if the original predicted data are NOT achieved or if an underlying assumption changes is called ________.
◦ sensitivity analysis
◦ net present value analysis
◦ internal rate-of-return analysis
◦ adjusted rate-of-return analysis

Question 2

A general rule in capital budgeting is that a project is accepted only if the internal rate of return equals or ________.
◦ exceeds the required rate of return
◦ exceeds the inflation rate
◦ exceeds the risk-free rate
◦ exceeds the accrual accounting rate of return

krakiolit · **Reply #1 on:** Mar 6, 2021

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