The internal rate of return method of analysis works best for independent projects with
conventional cash ﬂows.

Question

Quizplus · Accepted Answer

The IRR method is most suitable for projects with conventional cash flows, which means that the project has a negative cash flow at the beginning and positive cash flows in the future. It is also best for independent projects where the cash flows of one project do not depend on the cash flows of another project.

The Internal Rate of Return Method of Analysis Works Best