One of the arguments in favour of the internal rate of return is that it is easy to predict the internal and external environmental conditions ten or even twenty years ahead of time.

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) method does not inherently account for or predict internal and external environmental conditions in the future; it is a financial metric used to estimate the profitability of potential investments.

One of the Arguments in Favour of the Internal Rate