All of the statements concerning the internal rate of return method of capital decision making are correct except:

Question

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The internal rate of return method does not take into account the scale of projects. Rather, it focuses on finding the rate of return that makes the present value of the cash inflow equal to the present value of the cash outflows. The decision rule for the IRR method is to accept projects that have an IRR higher than the hurdle rate.

All of the Statements Concerning the Internal Rate of Return