Which Three of the Following Are Disadvantages of Using the IRR

question 38

Multiple Choice

Which three of the following are disadvantages of using the IRR method rather than the NPV method of project appraisal?

• A) IRR ranks in terms of percentage returns whereas NPV ranks in terms of amounts of money.
• B) IRR has an implicit reinvestment assumption at the IRR itself which is not reasonable.
• C) If the cash flows are non- conventional there may be more than one IRR.
• D) IRR does not take into account the time value of money.

---

Definitions:

High-Elevation Adaptations

The physical or physiological changes that enable organisms to survive and reproduce at high altitudes.

Positive Selection

A process by which beneficial genetic variations that increase fitness are selected for and become more common in a population.

Avian Influenza

A viral infection spread from bird to bird, often highly contagious and potentially deadly, also known as bird flu.

Phylogeny

The evolutionary history and lineage of species or groups of species, depicted as a tree-like diagram showing common ancestry.