Which of the following is true? IRR is the only measure that investors focus on when analysing the returns of a deal. IRR is only impacted by the timing of cash flows, and so is not a good measure of profitability. It is always true that the higher the risk of an investment, the higher the IRR that investment will achieve. IRR is one of a collection of measures that investors focus on, including profit and equity multiple (and other factors depending on the asset class).

Which of the following is true? IRR is the only measure that investors focus on when analysing the returns of a deal. IRR is only impacted by the timing of cash flows, and so is not a good measure of profitability. It is always true that the higher the risk of an investment, the higher the IRR that investment will achieve. IRR is one of a collection of measures that investors focus on, including profit and equity multiple (and other factors depending on the asset class).

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 12MC: Which of the following does nor assign a value to a business opportunity using time-value...

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Similar questions

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