Review the main problems that arise when one uses only IRR to evaluate potential projects. In spite
Question:
Review the main problems that arise when one uses only IRR to evaluate potential projects. In spite of these pitfalls, why do many managers use IRR instead of NPV to evaluate projects?
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Using the Internal Rate of Return IRR as the sole criterion for evaluating potential projects has some inherent problems and it is important for managers to be aware of these issues Here are the main ...View the full answer
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Related Book For 
Corporate Finance
ISBN: 9780077173630
3rd Edition
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
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