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Which of the following is not a disadvantage of using the IRR method rather than the NPV method of project appraisal? If the cash flows
- Which of the following is not a disadvantage of using the IRR method rather than the
NPV method of project appraisal?
- If the cash flows are non-conventional there may be more than one IRR.
- IRR ranks in terms of percentage returns whereas NPV ranks in terms of absolute
amounts of money.
- IRR does not take into account the time value of money.
- IRR has an implicit reinvestment assumption which is not reasonable.
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High Frequency Financial Econometrics
Authors: Yacine Aït Sahalia, Jean Jacod
1st Edition
0691161437, 978-0691161433
