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