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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.

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Category:- Financial Management
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