A significant disadvantage of the internal rate of return is that it

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) can result in multiple rates of return if there are non-conventional cash flows or if there are multiple changes in cash flow direction. In these cases, the IRR may not be a reliable measure of profitability or may require additional analysis. A and D are not considered disadvantages of the IRR, and B is a characteristic of net present value (NPV) analysis.

A Significant Disadvantage of the Internal Rate of Return Is