One Weakness of the Internal Rate of Return Financial Metric

question 42

True/False

One weakness of the internal rate of return financial metric is that larger projects tend to have higher internal rates of return.

---

Definitions:

Securities and Exchange Commission (SEC)

A U.S. government agency that oversees securities transactions, activities of financial professionals, and the stock market to protect investors.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in net income or loss.

Liabilities

Financial obligations or debts owed by a company to external parties, which must be settled over time through the transfer of economic benefits.

Assets

Resources owned by a company that have economic value and can be measured and expressed in monetary terms.