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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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