All of the following statements about the internal rate of return method are correct except that it
A) recognizes the time value of money.
B) is widely used in practice.
C) is easy to interpret.
D) can be used only when the cash inflows are equal.

Question

Quizplus · Accepted Answer

The statement "can be used only when the cash inflows are equal" is incorrect. The internal rate of return method can be used even when the cash inflows are not equal, although it may become more complex to calculate the IRR in such cases. The other statements are correct.

All of the Following Statements About the Internal Rate of Return