Opentuition Mock exam question

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March 7, 2017 at 3:48 pm #376306
Candy
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Dear John,

Please explain

Why is the fact that IRR not be reliably used as a basis for choosing between investments not a weakness?

If it is not reliable does that not mean it is weak?

Many thanks
March 7, 2017 at 8:17 pm #376377
John Moffat
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It is not a weakness of the IRR itself. The weakness is if we choose to use it to choose between investments.
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