Which of the following is considered to be a deficiency of the IRR? - 3968

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Request Description

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 fails to properly rank capital projects.

C.

 

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

D.

 

It could produce more than one rate of return.

 
Solution Description

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