❎All of the following is a shortcoming of the Internal Rate of Return (IRR) method:

IRR assumes that funds generated from a project will be reinvested at an interest rate equal to the project’s IRR.
IRR does not take into account the difference in the scale of investment alternatives.
Sign changes in the cash flow stream can generate more than one IRR.

✅IRR has advantage that:
IRR is easier to visualize and interpret than net present value (NPV).
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