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Select one disadvantage of IRR as a capital budget method. Projects of similar durations are not easily compared using IRR. It is only useful with
Select one disadvantage of IRR as a capital budget method.
- Projects of similar durations are not easily compared using IRR.
- It is only useful with projects that have negative cash flows.
- It can obscure the planning of mutually exclusive projects if one project has a higher IRR and another has a higher NPV.
- It involves complex calculations that are not always reliable.
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Advanced Financial Accounting
Authors: Richard Lewis, David Pendrill
7th Edition
0273658492, 978-0273658498
