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Multiple choice questions refer to selecting the best alternative out of the options for the given questions:
Select one disadvantage of IRR as a capital budget method.
It can be difficult to interpret and understand.
The internal rate of return (IRR) can be a complex concept to understand, especially when used in the context of capital budgeting. The IRR is a financial metric that represents the rate of return that an investment is expected to generate. It is used to evaluate the feasibility of a potential investment by comparing the IRR to a required rate of return or cost of capital.
Which of the following is an example of operational risk for a company that manufactures automobiles?
Damage to completed cars held on a storage lot
Operational risk refers to the dangers and ambiguities that businesses encounter on a daily basis. It could be brought on by a malfunctioning system or defective components. An operational risk for an auto manufacturer would be damage to finished vehicles stored on a lot.
What type of financing resource is Jerome using?
Peer to Peer lending
Peer-to-peer lending is a type of lending that allows individuals to borrow and lend money without using a traditional financial institution, such as a bank, as an intermediary
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