The Disadvantage of the IRR Method Is That

question 108

Multiple Choice

The disadvantage of the IRR method is that

• A) the IRR deals with cash flows.
• B) the IRR gives equal regard to all returns within a project's life.
• C) the IRR will always give the same project accept/reject decision as the NPV.
• D) the IRR requires long, detailed cash flow forecasts.

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Definitions:

Conscious Motivation

The awareness of internal or external forces that stimulate the desire to commit to a particular course of action.

Core Region

Typically refers to the central, most important area of a body or structure that often plays a crucial role in its function.

Quasi-Need Reduction

The concept that certain actions may temporarily reduce the strength of a need without it being completely satisfied.

Psychological Environment

The subjective perception of one's surroundings that can significantly influence mental and emotional states.