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What Is the Major Advantage of the Internal Rate of Return

Question 2

Multiple Choice

What is the major advantage of the internal rate of return comparison method?


A) It gives an explicit measure of profit.
B) It has familiar meanings to decision makers.
C) It is very easy to calculate and therefore it is commonly used.
D) It takes into account the need to have capital recovered quickly.
E) It facilitates the comparison of projects of different size.

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