One weakness of the internal rate of return financial metric is that larger projects tend to have higher internal rates of return.

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) does not inherently favor larger projects; it is a percentage measure that indicates the profitability of potential investments, regardless of their size. The IRR can be the same for both small and large projects if they offer the same percentage return.

One Weakness of the Internal Rate of Return Financial Metric