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Which of the Following Are BOTH a Problem with IRR

Question 2

Multiple Choice

Which of the following are BOTH a problem with IRR?


A) It assumes cashflows are invested at the calculated IRR; and IRR cannot be calculated if projected cashflows are very irregular
B) IRR cannot be calculated if projected cash flows are very irregular; and the time value of money is ignored
C) IRR is expressed only in percentage terms rather than absolute values; and the time value of money is ignored
D) IRR ignores excess cashflows; and it assumes cashflows are invested at the calculated IRR

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