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4) The firms use both Net PV method and IRR (Internal Rate of Return) Method to evalauate investments. The IRR method, however, have some problems.
4) The firms use both Net PV method and IRR (Internal Rate of Return) Method to evalauate investments. The IRR method, however, have some problems. The three problems cited regarding IRR are a) Re-investment assumption b) Multiple Root Problem c) Unconventional Cash Flow Problem. What are these problems? Explain these problems clearly by giving examples if necessary .
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