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:

MAN

A Metropolitan Area Network; a network that spans a physical area larger than a LAN but smaller than a WAN, used to connect users in a geographic region.

WAN

Wide Area Network, a telecommunications network that extends over a large geographic area for the primary purpose of computer networking.

MAN

Metropolitan Area Network; a network that interconnects users with computer resources in a geographic area or region larger than that covered by a large local area network (LAN) but smaller than the area covered by a wide area network (WAN).

LAN

Local Area Network, a network that connects computers within a limited area like a home, school, or office building.