Mock exam

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December 8, 2016 at 11:18 pm #362482
abdulbasit16
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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?
December 9, 2016 at 7:13 am #362531
John Moffat
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You are correct.

Thanks for spotting it – I will have it corrected.
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