Westonci.ca makes finding answers easy, with a community of experts ready to provide you with the information you seek. Discover in-depth answers to your questions from a wide network of experts on our user-friendly Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.
Sagot :
Limitations of the internal rate of return are:
- A project can have more than one internal rate of return.
- It fails to reflect varying levels of risk over a project's life.
The internal rate of return is a capital budgeting method. It is the discount rate that equates the after-tax cash flows from an investment to the amount invested.
If the internal rate of return is greater than the required return of the project, the project should be accepted. If this is not the case, the project should be rejected.
To learn more about the internal rate of return, please check: https://brainly.com/question/24172627?referrer=searchResults
We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.
