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Using the internal rate of return method, a study has found that the internal rate of...

Using the internal rate of return method, a study has found that the internal rate of return to a college education is 8% Indicate if the statement below is true or false and in 2 or 3 sentences explain why:

STATEMENT: A present-oriented person is more likely to find this rate of return attractive than one who is not so present oriented

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Answer #1

Answer:

Given

STATEMENT is:

A present-oriented person is more likely to find this rate of return attractive than one who is not so present oriented

FALSE

Reason:

8% internal rate of return is an absolute value.

So, it cannot be compared to any future returns.

So, we cant say present oriented person will find it more attractive.

Hence statement is not true.

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