Perhaps the greatest disadvantage of using the IRR method to evaluate

Perhaps the greatest disadvantage of using the IRR method to evaluate investment opportunities is:

A) dealing with uncertain cash flows from the project.
B) the assumption that all cash flows from the project will be reinvested at the IRR.
C) the inability to calculate most IRRs without a computer.
D) the need to compare IRR with the firm’s cost of capital which cannot be estimated precisely.
E) the fact that the technique does not account for risk.

ANSWER

B