
One weakness of the internal rate of return approach is that:
A) it does not directly consider the timing of the cash flows from a project
B) it fails to provide a straightforward decision-making criterion
C) it implicitly assumes that the firm is able to reinvest the interim cash flows from a project at the firm's cost of capital.
D) none of the above
Correct Answer:
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Q2: The internal rate of return method assumes
Q3: The _ measures the present value return
Q3: Which of the following is not a
Q5: When a project has multiple internal rates
Q7: If a net present value analysis for
Q10: Multiple internal rates of return can occur
Q12: In the absence of capital rationing, the
Q15: The objective in solving capital rationing problems
Q17: The advantages of the payback approach include
Q19: The payback method is at best a
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