What is the main disadvantage of the Internal Rate of Return method?

Question

Quizplus · Accepted Answer

The main disadvantage of the Internal Rate of Return method is that it ignores the scale of projects, which can lead to wrong decision-making. This is because the IRR method assumes that all cash inflows and outflows occur at the same time, regardless of the size of the project or investment. As a result, it may provide misleading results and inaccurate evaluations of the profitability of a project. While choices B and C may also have some validity, they are not the main disadvantage of the IRR method.

What Is the Main Disadvantage of the Internal Rate of Return