Which Statement Regarding the IRR Method Is Correct

question 60

Multiple Choice

Which statement regarding the IRR method is correct?

• A)One defect of the IRR method is that it does not take account of cash flows over a project's full life.
• B)One defect of the IRR method is that it does not take account of the time value of money.
• C)One defect of the IRR method is that it does not take account of the cost of capital.
• D)One defect of the IRR method is that it does not assume that the cash flows to be received from a project can be reinvested at a rate other than the IRR itself.

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Definitions:

Intermingled

Combined or mixed together, not easily separated, often referring to the blending of cultures, ideas, or substances.

Early Twentieth Century

A period marked by drastic social, economic, cultural, and technological changes worldwide, ranging from the 1900s to the 1939 outbreak of World War II.

Quantitative Sociology

A research method in sociology that focuses on statistical, mathematical, or numerical analysis of data collected through polls, questionnaires, surveys, etc.

Behaviours

For Parsons, the almost mechanical responses to specific stimuli.