Which of the following statements is/are NOT a
weakness of the internal rate of return (RR) in
appraising investments?
(1) It ignores the time value of money
(2) There can be several IRR's for the same
investment
(3) It is dependent on the cost of capital for the
Company
(4) It cannot reliably be used as a basis for
choosing between investments
Sir the mock exam answer is given as 2 and 4. Whereas i think the answer should be 1 and 3. As 2 nd 4 r weaknesses. Am i right?
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Mock exam
9y ago#1You are correct.
Thanks for spotting it - I will have it corrected.
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