Problem with the irr method

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Reference no: EM131551270

One problem with the IRR method is that:

a) it does not take account of cash flows over a project’s full life.

b) it does not take account of the cash outflows.

c) it does not provide a rate of return.

d) it values a dollar received today the same as a dollar that will not be received until sometime in the future.

e) it assumes that the cash flows generated by a project can be reinvested back into the same project, and this assumption is often not valid.

Reference no: EM131551270

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