Question 20 (2 points) Which of the following is a major drawback of IRR method: Question 20 options:

A. IRR calculation does consider time value.

B. IRR is used primarily due to its easy concept and could be communicated with non-business people.

C. When pairing with NPV method, IRR is still a very good approach for project evaluation.

D. IRR method could general multiple results which could hugely confuse decision makers.

Question 21 (2 points) Surveys show that most Canadian firms actually use two or more capital budgeting methods. However, small businesses tend to concern about their liquidity. Question 21 options: True or False

Question 22 (2 points) Payback period method is easy to calculate and understand and is a good approach for short-life cycle and risky projects.

Question 22 options: True or False