Which of the following in NOT a potential problem suffered by the IRR
Which of the following in NOT a potential problem suffered by the IRR method of capital budgeting?
A) Multiple IRRs
B) Disagreement with the NPV as to whether a project with ordinary cash flows is profitable or not
C) Incorporates the IRR as the reinvestment rate for the future cash flows
D) Comparing mutually exclusive projects
ANSWER
Answer: B
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