A Limitation of the Internal Rate of Return Method Is

question 21

Multiple Choice

A limitation of the internal rate of return method is that it:

• A) Measures results in years.
• B) Measures net income rather than cash flows.
• C) Does not consider the time value of money.
• D) Ignores varying risks over the life of a project.
• E) Lacks ability to compare dissimilar projects.

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Definitions:

Eclampsia

A severe complication of pregnancy characterized by high blood pressure, seizures, and possibly coma or death.

Lamp(s)

Devices that produce light, typically through the use of a bulb, filament, or LED.

Anteversion

A forward tilt of an organ, especially the uterus, from its normal position.

Uterus

A female reproductive organ where a fertilized egg can develop into a fetus; also known as the womb.