Advantages and limitations of the internal rate of return

Question

Explain the advantages and limitations of the internal rate of return method?

Answer 1

a) The main characteristic or the advantage is the Return method’s internal rate is a discounted cash flow method and a number given in a form of percentage.

b) The most important limitation of the internal return rate is that it is to some extent very hard to calculate even though this is not very true with the availability of financial calculators.