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Why Is the Internal Rate of Return (IRR)inadequate When Comparing

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Why is the internal rate of return (IRR)inadequate when comparing mutually exclusive investments of different scale?


Definitions:

Acidity

A measure of the ability of a solution to donate hydrogen ions (H+) and thereby lower its pH.

pH

A scale used to specify the acidity or basicity of an aqueous solution, with values ranging typically from 0 (highly acidic) to 14 (highly basic).

pH

A scale used to specify the acidity or basicity of an aqueous solution, where 7 is neutral, values less than 7 are acidic, and values greater than 7 are basic.

pH

a numeric scale used to specify the acidity or basicity of an aqueous solution, with values below 7 being acidic, above 7 being basic, and 7 being neutral.

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