Which of the following is considered to be a deficiency of the IRR? - 2303

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Which of the following is considered to be a deficiency of the IRR?

a. It fails to utilize the time value of money.

b. It could produce more than one rate of return.

c. It is not useful in accounting for risk in capital budgeting.

d. It fails to properly rank capital projects.

Solution Description

Which of the following is considered to be a deficiency of the IRR?