The disadvantages of the internal rate of return (IRR) method are:

Select one:

a. The IRR requires the precise forecast of the future cash flows.

b. The IRR cannot show the increase in value, in monetary terms

c. All of the statements are correct

d. The IRR method assumes that the future cash inflows are reinvested at an interest rate equal to the rate of return.

e. Sometimes the IRR method may produce multiple internal rates of return.