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:

Oral Character

A term from psychoanalytic theory describing personality traits associated with the oral stage of psychosexual development, such as dependence or passivity.

Anal Character

A personality type derived from Freudian theory, suggesting that individuals fixated at the anal stage exhibit traits like orderliness, stubbornness, and a need for control.

Passively Respond

A behavior or response where an individual does not actively engage or react in a situation but instead allows things to happen without direct interaction.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.