1. The IRR decision criteria is directly related to NPV but has two key weaknesses which are

a. the failure to consider initial expenditures and failure to correctly analyze mutually exclusive projects.

b. arbitrary determination of a discount rate and failure to consider initial expenditures.

c. failure to correctly analyze mutually exclusive projects and the lack of a clear-cut decision rule.

d. failure to correctly analyze mutually exclusive projects and the multiple rate of return problem.

e. failure to consider all cash flows and the multiple rate of return.