The Following Are Some of the Shortcomings of the IRR

question 43

Multiple Choice

The following are some of the shortcomings of the IRR method except:

• A) IRR is conceptually easy to communicate
• B) Projects can have multiple IRRs
• C) IRR method cannot distinguish between a borrowing project and a lending project
• D) It is very cumbersome to evaluate mutually exclusive projects using the IRR method

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Definitions:

Instinct

An ingrained behavior observed in animals that consistently occurs in reaction to designated stimuli.

Drive-Reduction Theory

A psychological theory suggesting that motivation arises from biological needs driving an individual to act in ways that reduce drives and achieve homeostasis.

Physiological Needs

The most basic human necessities required to sustain life, such as air, water, food, shelter, and sleep, according to Maslow's hierarchy of needs.

Psychological Wants

Desires primarily based on emotional or mental fulfillment rather than basic survival or physiological needs.