Solved

One Weakness of the Internal Rate of Return Approach Is

Question 6

Multiple Choice

One weakness of the internal rate of return approach is that:


A) it does not directly consider the timing of the cash flows from a project
B) it fails to provide a straightforward decision-making criterion
C) it implicitly assumes that the firm is able to reinvest the interim cash flows from a project at the firm's cost of capital.
D) none of the above

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions