Which is the missing phrase in the following sentence? A weakness of the ____ method of investment appraisal is that it cannot be used where the pattern of cash flows is irregular, with a mixture of cash inflows and cash outflows.

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) method assumes that cash flows are reinvested at the IRR itself, which can lead to misleading results when cash flows are irregular or when there are alternating periods of cash inflows and outflows.

Which Is the Missing Phrase in the Following Sentence? a Weakness