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A limitation of the internal rate of return method is thatit: Does not consider the time value of money. Measures results in years. Lacks ability
A limitation of the internal rate of return method is thatit:
Does not consider the time value of money.
Measures results in years.
Lacks ability to compare dissimilar projects.
Ignores varying risks over the life of a project.
Measures net income rather than cash flows.
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Management And Cost Accounting
Authors: Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan
7th Edition
1292232668, 978-1292232669
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