Which of the following statements is correct regarding the internal rate of return (IRR)
method?
A. Each project has a unique internal rate of return.
B. As long as you are not dealing with mutually exclusive projects, capital rationing,
or unusual projects having multiple sign changes in the cash-flow stream, the
internal rate of return method can be used with reasonable confidence.
C. The internal rate of return does not consider the time value of money.
D. The internal rate of return is rarely used by firms today because of the ease at
which net present value is calculated.
method?
A. Each project has a unique internal rate of return.
B. As long as you are not dealing with mutually exclusive projects, capital rationing,
or unusual projects having multiple sign changes in the cash-flow stream, the
internal rate of return method can be used with reasonable confidence.
C. The internal rate of return does not consider the time value of money.
D. The internal rate of return is rarely used by firms today because of the ease at
which net present value is calculated.