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The internal rate of return: Multiple Choice
a. may produce multiple rates of return when cash flows are conventional.
b. is best used when comparing mutually exclusive projects.
c. is rarely used in the business world today.
d. is principally used to evaluate small dollar projects.
e. is the most popular evaluation techinque.

Respuesta :

Nyctalus

Answer: Option C

                       

Explanation: Internal rate of return is used less in common business world as the  most popular measure is the net present value which shows how much profit will a company make by choosing to do a project.

IRR produce different results for unconventional cash flows and NPV is used for evaluating mutually exclusive projects. IRR shows the rate of return from the investment but is vague as the overall result is shown by the net present value.  

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