Question 54 The Internal Rate of Return (IRR)? Never uses the time value of money Is always preferred to the NPV methodology for capital budgeting O is the interest rate that occurs when the NPV = WACC - YTM = [(Cost of Debt) * (Cost of Equity)] O is the interest rate that occurs when the NPV is ZERO. The present value of the outflows/costs = the present value of the inflows/benefits 2 pts Question 55 Risk management methods to reduce uncertainty include all of the following except: O Risk reduction Risk avoidance Risk transfer Risk assumption Trick question. All of the above are risk management methods