The elements that cause problems with the use of the IRR in projects that are mutually exclusive are:
A) the discount rate and scale problems.
B) timing and scale problems.
C) the discount rate and timing problems.
D) scale and reversing flow problems.
E) timing and reversing flow problems.

Question

Quizplus · Accepted Answer

The IRR can be problematic for mutually exclusive projects due to timing and scale problems, as it may not accurately reflect the best project choice when cash flows differ in timing or size.

The Elements That Cause Problems with the Use of the IRR