alleryStart learning →The same return received later gives an IRR that is:
AHigher than if received sooner
BIdentical in both cases
CImpossible to determine
DLower than if received sooner
Answer & Solution
Correct answer: D. Lower than if received sooner
IRR reflects time preference, so a delayed receipt of the same sum gives a lower rate.
Keep practising Internal Rate of Return
Browse all Internal Rate of Return questions for CA Inter, or explore more Financial Management topics.
Related questions
If cash flows are random variables, as in a life annuity, IRR uses their:The AIRR approach of Magni was introduced to solve problems of:In personal finance the IRR measures what type of performance?With no capital constraint, which projects does a firm accept to maximize value?Mutually exclusive projects are those from which:The equivalent annuity method divides the NPV by what to annualize it?The equivalent annuity method is often used to compare projects of:To maximize return, projects are ranked in order of: