Which of the following items describes a weakness of the internal rate-of-return method? a. The internal rate

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Which of the following items describes a weakness of the internal rate-of-return method?
a. The internal rate of return is difficult to calculate and requires a financial calculator or spreadsheet tool such as Excel to calculate efficiently.
b. Cash flows from the investment are assumed in the IRR analysis to be reinvested at the internal rate of return.
c.
The internal rate-of-return calculation ignores time value of money.
d. The internal rate-of-return calculation ignores project cash flows occurring after the initial investment is recovered.
Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...
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Horngrens Cost Accounting A Managerial Emphasis

ISBN: 978-0134475585

16th edition

Authors: Srikant M. Datar, Madhav V. Rajan

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