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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