The internal rate of return method of analysis should not be used for comparing two independent projects of differing sizes.

Name: The internal rate of return method of analysis should not be used for comparing two independent projects of differing sizes.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The internal rate of return (IRR) method does not account for the scale of the project, making it less suitable for comparing projects of different sizes since it only indicates the percentage rate of return, not the absolute amount of returns.

The Internal Rate of Return Method of Analysis Should Not