Which of the following is NOT a major strength of the IRR method of capital budgeting?
A) For straight forward projects of negative cash flows followed by positive cash flows, it is consistent with the NPV method of establishing if a project is acceptable or not.
B) The IRR method uses time value of money techniques.
C) The IRR cutoff interest rate is arbitrary.
D) The IRR considers opportunity costs.
C
Business
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What will be an ideal response?
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