Which of the Following Is a Weakness of the Internal

question 209

Multiple Choice

Which of the following is a weakness of the internal rate of return (IRR) ?

• A)IRR assumes that the cash inflows from the project are immediately reinvested at the minimum required rate of return.
• B)IRR ignores the time value of money.
• C)IRR assumes that the cash inflows from the project are immediately reinvested at the internal rate of return.
• D)IRR is not a percentage rate, but is expressed in dollars.

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Definitions:

Inspiratory Reserve Volume

The additional amount of air that can be inhaled after a normal inhalation, used to assess lung function.

Tidal Volume

The amount of air that is inhaled or exhaled during normal breathing.

Functional Residual Capacity

The volume of air remaining in the lungs after a normal, passive exhalation.

Inspiratory Capacity

The total amount of air that can be inhaled after a normal exhalation, indicating the function of lung expansion.