Under which of the following conditions would IRR lead to an erroneous or misleading result (choose the two likely scenarios)?

A. The sign of the cash flow changes more than once.

B. NPV is negative

C. Mutually exclusive projects

D. Cash flow in Year 0 is negative

E. The payback period exceeds 3 years

Under which of the following circumstances would it be most acceptable to use the Packback Period decision method (check all that apply)

1. The project involves buying a piece of equipment that has a defined, limited life span.
2. The project involves international operations
3. The project involves relatively small amounts of money.
4. The project is expected to last more than 5 years

In capital budgeting, what is IRR best used as?

A. the primary decision making methof.

B. The way to confirm that Payback Period is correct.

C. A reporting tool for projects that do not have non-conventional.

D. The best way to choose between mutually exclusive projevts.