q what is disadvantages of irr method


Q. What is Disadvantages of IRR Method ?

Disadvantages of IRR Method:-

(i) Computation of IRR involves tedious calculations.

(ii) Occasionally this method produces more than one IRR. In such a case it happen to difficult to accept or reject the proposal.

(iii) It is supposed under the IRR method that all cash inflows of the project are reinvested at IRR rate. This assumption isn't valid.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: q what is disadvantages of irr method
Reference No:- TGS0328603

Expected delivery within 24 Hours