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Which of the following is a key disadvantage of the IRR method? With mutually exclusive projects, the IRR method can lead to incorrect investment decisions.

Which of the following is a key disadvantage of the IRR method?

With mutually exclusive projects, the IRR method can lead to incorrect investment decisions.

With conventional cash flows, the IRR method can yield multiple answers.

The IRR method is not based on a discounted cash flow technique.

The IRR method ignores all cash flows after the arbitrary cutoff period.

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