Which of the following is not a limitation of the IRR capital budgeting technique?
A)It does not take into account the size of the project.
B)It is difficult to calculate without using trial and error,a financial calculator or a spreadsheet.
C)The rule must be modified if it is an investing project or a financing project.
D)Multiple IRR values can arise if the project has both positive and negative future cash flows.
E)All of the above are limitations of the IRR technique.

Question

Quizplus · Accepted Answer

All the options listed are limitations of the IRR technique, including issues with project size, calculation difficulty, rule modification for different project types, and multiple IRRs for projects with mixed cash flows.

Which of the Following Is Not a Limitation of the IRR