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One Weakness of the Internal Rate of Return Approach Is

Question 57

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 rule.
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

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