Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following is an advantage of the internal rate of return method? a. It takes into account cash flows occurring only till

 

Which of the following is an advantage of the internal rate of return method? a. It takes into account cash flows occurring only till the time the initial investment is completely paid back. b. It does not use present value concepts in valuing cash flows occurring in different periods because this concept can give incorrect results. c. It ranks proposals based upon the cash flows over their complete useful life, even if the project lives are not the same. d. It assumes the cash received from a proposal can be reinvested at the minimum desired rate of return.

Step by Step Solution

3.40 Rating (147 Votes )

There are 3 Steps involved in it

Step: 1

Answer c Explanation Internal rate method unlike NPV ranks the prop... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Assurance Services

Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws

6th edition

978-1259197109, 77632281, 77862341, 1259197107, 9780077632281, 978-0077862343

More Books

Students also viewed these Accounting questions

Question

Why are tourists and visitors an important part of a sport event?

Answered: 1 week ago