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Cappital budggeting

5.2 AAdvantagess and disaadvantagees of IRR

 Consideers the timee value of  Commplicated too calculatee

money
 Not a measuree of absoluute
 Relative measuress therefore proffitability
easy to ccompare innvestmentss
 Onlyy provides an estimaate
 Uses cash flow

 Consideers the whoole life of

the projeect

 Should mmaximise sshareholdeer

wealth

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