One Weakness of the Internal Rate of Return Approach Is

question 77

Multiple Choice

One weakness of the internal rate of return approach is that it ____.

• A) does not directly consider the timing of the cash flows from a project
• B) fails to provide a straightforward decision-making criterion
• C) implicitly assumes that the firm is able to reinvest the interim cash flows from a project at the firm's cost of capital.
• D) None of these are correct

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