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One weakness of the internal rate of return approach to capital budgeting decision-making is that IRR can rank projects differently than other evaluation methods. Multiple
One weakness of the internal rate of return approach to capital budgeting decision-making is that
IRR can rank projects differently than other evaluation methods.
Multiple IRRs can occur when there are large end of project cash flows.
Project cash flows are assumed to be reinvested at the project's IRR.
All of the above are weaknesses.
None of the above are weaknesses.
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