What Is the Main Disadvantage of the Internal Rate of Return

question 47

Multiple Choice

What is the main disadvantage of the Internal Rate of Return method?

• A)it ignores the scale of projects, which could lead to wrong decision-making.
• B)it is difficult for management to incorporate it into decision-making.
• C)it is too simplistic.
• D)all of the above.

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Definitions:

Puffing

Exaggerated or boastful statements about a product or service that are subjective and not meant to be taken literally.

Restatement Of Contracts

A comprehensive set of principles regarding contract law drafted by legal scholars to help clarify and unify the law of contracts.

Magnuson-Moss Act

A federal law enacted to protect consumers from deceptive warranty practices, ensuring warranties on consumer products are clear and enforceable.

UCC

Short for the Uniform Commercial Code, a standardized set of laws and regulations that govern commercial transactions in the United States.