Which of the following statements is CORRECT? a. One defect of the IRR method versus the NPV
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Question:
Which of the following statements is CORRECT?
a. | One defect of the IRR method versus the NPV is that the IRR does not take account of cash flows over a project's full life. | |
b. | One defect of the IRR method versus the NPV is that the IRR does not take account of the cost of capital. | |
c. | One defect of the IRR method versus the NPV is that the IRR does not take account of the time value of money. | |
d. | One defect of the IRR method versus the NPV is that the IRR does not take proper account of differences in the sizes of projects. | |
e. | One defect of the IRR method versus the NPV is that the IRR values a dollar received today the same as a dollar that will not be received until sometime in the future. |
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