**In analyzing the economic performance of a bioenergy project, the use of internal rate of return method got the following limitations:**


There exists a huge theoretical preference for NPV analysis for project appraisal and investigations suggests that corporate executives prefer internal rate of return (IRR) analysis over net present value analysis. Actually, managers like to compare projects of varying sizes in terms of predictive performance, using IRR as a decision metric put a summary value of the firm performance rather NPV returns a value of merit figure not a rate. IRR method is an obviously a shortcut of assessing the economic viability of a project.
