Which of the following is NOT a major strength of the IRR method of capital budgeting?
A) For straight forward projects of negative cash flows followed by positive cash flows,it is consistent with the NPV method of establishing if a project is acceptable or not.
B) The IRR method uses time value of money techniques.
C) The IRR cutoff interest rate is arbitrary.
D) The IRR considers opportunity costs.
Correct Answer:
Verified
Q27: The capital budgeting techniques presented by the
Q28: The MIRR eliminates the following statements regarding
Q29: The IRR method of capital budgeting tells
Q30: Your firm is considering a new investment.The
Q31: The single most important and desirable of
Q33: The IRR method gives a _ to
Q34: By allowing partial year values,the payback method
Q35: The payback method of capital budgeting may
Q36: _ is the right but not the
Q37: For a project with ordinary cash flows
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents