Show the advantages of irr method, Financial Management

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Q. Show the Advantages of IRR Method?

Advantages of IRR Method:-

(i) Similar to the other DCF methods IRR methods as well take into consideration the time value of money.

(ii) It takes into account every cash inflows and outflows occurring over the entire life time of the project.

(iii) Although the computation of IRR involves tedious calculation its meaning is easier to understand in comparison to the concept of NPV.

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