Which of the Following Is Considered to Be a Deficiency

question 79

Multiple Choice

Which of the following is considered to be a deficiency of the IRR?

• A) It fails to properly rank capital projects.
• B) It could produce more than one rate of return.
• C) It fails to utilize the time value of money.
• D) It is not useful in accounting for risk in capital budgeting.

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Definitions:

Job Sharing

A work arrangement where two or more people share the responsibilities and duties of a single full-time job.

Flexible Benefit Plan

Benefit system that offers employees a range of options from which they may choose the types of benefits they receive.

Toddlers

Young children, typically aged between one and three years old, who are learning to walk and develop basic motor skills.

Gain Sharing

A type of incentive plan where employees receive bonuses based on improvements in the company's performance.