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