Thursday, 4 February 2016

Cima C01 Exam Question No 41

Question No 41:

Which THREE of the following statements are advantages of the internal rate of return (IRR) method of investment appraisal?

A. It is a measure of absolute profitability
B. It considers the time value of money
C. It is an easy to understand percentage measure
D. It is based on accounting profits
E. It considers the whole life of a project
F. It is a simple measure of risk

Answer: B, C, E

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