The following are some of the shortcomings of the IRR method except:
A)IRR is conceptually easy to communicate.
B)Projects can have multiple IRRs.
C)IRR cannot distinguish between a borrowing project and a lending project.
D)It is very cumbersome to evaluate mutually exclusive projects using the IRR method.

Question

Quizplus · Accepted Answer

The statement "IRR is conceptually easy to communicate" is not a shortcoming, but rather a strength of the method. The other options (B, C, and D) are all acknowledged shortcomings of the IRR method.

The Following Are Some of the Shortcomings of the IRR