Two key weaknesses of the internal rate of return rule are the
A) arbitrary determination of a discount rate and failure to consider initial expenditures.
B) failure to correctly analyze mutually exclusive projects and the multiple rate of return problem.
C) failure to consider all cash flows and the multiple rate of return problem.
D) failure to consider initial expenditures and failure to correctly analyze mutually exclusive projects.
E) failure to correctly analyze mutually exclusive projects and the lack of a clear-cut decision rule.
Correct Answer:
Verified
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