Question
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...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended 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
Students also viewed these Accounting questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App