Advantages and disadvantages of internal rate of return, Financial Management

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What are the advantages and disadvantages of the internal rate of return method?

The internal rate of return process is a discounted cash flow method and a number expressed as a percentage.  These are in general seen as advantages.  The major disadvantage of the internal rate of return is that it is somewhat more difficult to compute, even though this is less true with the ready availability of financial calculators. 

 


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