Which of the following is not a weakness of the IRR method Question options: May
ID: 2712542 • Letter: W
Question
Which of the following is not a weakness of the IRR method
Question options:
May have multiple IRRs
Ignore the scale of the project
May not work properly if negative cash flow (other than the initial year) occurs after the positive cash flow.
Ignore the cash flows after the IRR is reached
May have multiple IRRs
Ignore the scale of the project
May not work properly if negative cash flow (other than the initial year) occurs after the positive cash flow.
Ignore the cash flows after the IRR is reached
Explanation / Answer
Ignore the scale of the project is not the weakness of the IRR method