How Does Modified Internal Rate of Return (MIRR)differ from IRR

question 35

Multiple Choice

How does modified internal rate of return (MIRR) differ from IRR?

• A)MIRR does not consider cash flows occurring after the cut-off date.
• B)MIRR uses NPV, IRR does not.
• C)MIRR calculates the PV of cash inflows and then divides by the PV of the investment.
• D)MIRR reduces the number of sign changes in a cash flow sequence.

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Definitions:

Bodily Arousal

The physiological and psychological state of being awoken or stimulated, often associated with emotion, stress, or excitement.

Emotion

A complex psychological state involving three distinct components: a subjective experience, a physiological response, and a behavioral or expressive response.

James-Lange Theory

A theory of emotion proposing that physiological arousal precedes the experience of emotion.

Emotional Experience

The complex psychological state involving an individual's subjective feelings, physical responses, and behavioral expressions in response to stimuli.