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    • Question

      A key limitation of IRR is

      that:​
      A It doesn't consider the time value of money Correct Answer Incorrect Answer
      B It’s always higher than the NPV Correct Answer Incorrect Answer
      C It assumes reinvestment at IRR, which may not be realistic Correct Answer Incorrect Answer
      D It cannot be used for ranking projects Correct Answer Incorrect Answer
      E It ignores salvage value Correct Answer Incorrect Answer

      Solution

      The correct answer is C

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