Which of the following is NOT a problem associated with the internal rate of return (IRR) method for making investment decisions:（）
A. IRR and NPV criteria can give conflicting decisions for mutually exclusive projects.
B. if the IRR is above the firm’ s cost of capital, the project should be rejected.
C. The IRR method assumes cash flows are reinvested at the investment’ s internal rate of return.
参考答案：B
解析：
The IRR method equates an investment’s present value of inflows to its present value of outflows. The IRR by definition is the discount rate that sets the net present value of a project equal to zero. Therefore, the decision rule for independent projects is as follows: if the IRR is above the firm’s cost of capital, the project should be accepted, and if the IRR is below the cost of capital, the project should be rejected.