Internal rate of return (IRR) can reliably be used to choose between mutually exclusive projects.

Name: Internal rate of return (IRR) can reliably be used to choose between mutually exclusive projects.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

IRR does not account for differences in scale of investment or project duration, making it less reliable for choosing between mutually exclusive projects compared to methods like Net Present Value (NPV) which consider the scale of cash flows and the time value of money.

Internal Rate of Return (IRR) Can Reliably Be Used to Choose