Two Key Weaknesses of the Internal Rate of Return Rule

question 70

Multiple Choice

Two key weaknesses of the internal rate of return rule are the:

• A)arbitrary determination of a discount rate and failure to consider initial expenditures.
• B)failure to correctly analyze mutually exclusive projects and the multiple rate of return problem.
• C)failure to consider all cash flows and the multiple rate of return problem.
• D)failure to consider initial expenditures and failure to correctly analyze mutually exclusive projects.
• E)failure to correctly analyze mutually exclusive projects and the lack of clear-cut decision rule.

---

Definitions:

Microblogging

A form of blogging that allows users to write brief text updates and publish them, typically used on platforms like Twitter.

Wiki

A website that allows collaborative editing of its content and structure by its users.

Product Usage

The manner in which consumers use a product, including frequency, purpose, and method of use.

Micromessaging Systems

Digital platforms that facilitate brief and instant communication exchanges, often used in business and personal contexts for quick interactions.