In reference to the Capital Budgeting: 1- One disadvantage of IRR is that for a project, there

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In reference to the Capital Budgeting:

1- One disadvantage of IRR is that for a project, there may be more than one IRR. How would you choose and which one?

2- What are the limitations of using NPV for non-corporate investment projects. Why does the World Bank prefer IRR over NPV for its funded projects?

3- For some multiple capital budgeting projects there is a cross-over rate. What are its limitations, and can they be overcome by using more than one investment criteria?

Related Book For answer-question

Auditing and Assurance services an integrated approach

ISBN: 978-0133125689

15th edition

Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley

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Posted Date: Feb 06, 2024 08:30 AM

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In reference to the Capital Budgeting: 1- One disadvantage of IRR is that for a project, there

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1 Multiple IRRs in IRRs Disadvantage Cause IRRs flaw lies in ignoring cash flow reinvestability assumptions When cash flows fluctuate sign positive to ... View the full answer

Auditing and Assurance services an integrated approach

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