Which of the Following Is an Advantage of Internal Rate

question 1

Multiple Choice

Which of the following is an advantage of internal rate of return method?

• A) Sum of IRRs of individual projects gives an IRR of a combination or portfolio of projects.
• B) The percentage returns computed under the IRR method are easy to understand and compare.
• C) It can be expressed as a unique number.
• D) It can be used when the required rate of return varies over the life of a project.

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Definitions:

Control Activity Over Cash

Practices and procedures implemented to manage and safeguard cash transactions and prevent fraud.

Payments To Creditors

It refers to the amounts of money a company owes to its suppliers or service providers and plans to pay back.

Limited Access

Limited access refers to restrictions placed on the availability or use of resources, data, or areas, often for security, privacy, or regulatory reasons.

Detective Controls

Internal control mechanisms designed to identify and alert businesses of errors, fraud, or variances that occur in financial transactions.