Which of the following is a weakness of the internal rate of return (IRR) ?
A) IRR assumes that the cash inflows from the project are immediately reinvested at the minimum required rate of return.
B) IRR ignores the time value of money.
C) IRR assumes that the cash inflows from the project are immediately reinvested at the internal rate of return.
D) IRR is not a percentage rate, but is expressed in dollars.
Correct Answer:
Verified
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