The internal rate of return is unreliable as an indicator of whether or not an investment should be accepted given which one of the following? a) The cash flows are conventional.
b) The investment has cash inflows that occur after the required payback period.
c) The investment is mutually exclusive with another investment under consideration.
d) The initial cash flow is negative.

c) The investment is mutually exclusive with another investment under consideration.

Explanation:

The main indicator as to whether or not accept a project or not is the net present value (NPV). Only projects with a positive NPV should be considered. On the other hand, the internal rate of return (IRR) has a couple of issues and is not that reliable because it does not consider the size of the projects, or associated future costs, or even the duration of the projects. The IRR is not a good method to evaluate long term projects.

So when you have to compare mutually exclusive projects, the IRR should not be considered due to the issues previously mentioned.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi