One problem with the IRR method is that:
a) it does not take account of cash flows over a project’s full life.
b) it does not take account of the cash outflows.
c) it does not provide a rate of return.
d) it values a dollar received today the same as a dollar that will not be received until sometime in the future.
e) it assumes that the cash flows generated by a project can be reinvested back into the same project, and this assumption is often not valid.