Please go to:

http://ww2.cfo.com/strategy/2004/10/internal-rate-of-return-a-cautionary-tale/

and read Internal Rate of Return: A Cautionary Tale by John C. Kelleher and Justin J. MacCormack.

Then please explain the meaning and importance of interim cash flows together with their impact on reliability of IRR as a decision method in capital budgeting.

What is your conclusion on the future of IRR as a project evaluation method? Explain.