A Limitation of the Internal Rate of Return Method Is

question 5

Multiple Choice

A limitation of the internal rate of return method is that it:

• A)Does not consider the time value of money.
• B)Measures results in years.
• C)Lacks ability to compare dissimilar projects.
• D)Ignores varying risks over the life of a project.
• E)Measures net income rather than cash flows.

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Definitions:

Rubber Stamps

Implements crafted from rubber that imprint designs or text on various materials, commonly used in offices for endorsing documents.

Letters

Written or printed communication addressed to a person or organization, typically consisting of a greeting, body, closing, and signature.

Rubber Stamps

Tools used to apply inked designs or impressions, metaphorically referring to giving approval without careful consideration.

Business Communications

The sharing of information between people within and outside an organization in a professional context.