The disadvantage of the IRR method is that
A) the IRR deals with cash flows.
B) the IRR gives equal regard to all returns within a project's life.
C) the IRR will always give the same project accept/reject decision as the NPV.
D) the IRR requires long, detailed cash flow forecasts.

Question

Quizplus · Accepted Answer

The IRR method requires detailed cash flow forecasts to calculate the rate of return, which can be complex and time-consuming.

The Disadvantage of the IRR Method Is That