The IRR rule can lead to a business making a bad decision if the projects are mutually exclusive and if cashflows are not conventional.
This is a rule in capital budgeting that uses a rate which equates the Net Present Value of a project to zero.
The problem with this method is that if the cash inflows are not conventional, the IRR might make a project seem less profitable than it is which could lead to it being rejected.
Find out more on the IRR rule at https://brainly.com/question/7920964
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