Define advantage and disadvantage of internal rate of return, Financial Management

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

The internal rate of return (IRR) method is a discounted cash flow method and a number expressed as a percentage. These are usually seen as advantages. The major disadvantage of the internal rate of return (IRR) is that it is somewhat much hard to calculate, even though this is less true with the ready availability of financial calculators.

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