Which of the Following Is an Advantage of Internal Rate

question 1

Multiple Choice

Which of the following is an advantage of internal rate of return method?

• A) Sum of IRRs of individual projects gives an IRR of a combination or portfolio of projects.
• B) The percentage returns computed under the IRR method are easy to understand and compare.
• C) It can be expressed as a unique number.
• D) It can be used when the required rate of return varies over the life of a project.

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