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What Are Some Potential Problems in Using Internal Rate of Return

question 106

Essay

What are some potential problems in using internal rate of return (IRR) for mutually exclusive projects?


Definitions:

Recommendation

A suggestion or advice designed to guide decisions or actions.

Deadline

A fixed or final time by which something must be completed or submitted.

Neutral Buffer

An introductory statement in communication that is neither positive nor negative, used to ease into a sensitive or controversial topic.

Adjustment

The process of making small changes to something in order to achieve a desired result or to correct a misalignment.

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