Which of the Following Is Most Correct? the Modified IRR

question 17

Multiple Choice

Which of the following is most correct? The modified IRR (MIRR) method:

• A)Always leads to the same ranking decision as NPV for independent projects.
• B)Overcomes the problem of multiple rates of return.
• C)Compounds cash flows at the required rate of return.
• D)Overcomes the problem of cash flow timing and the problem of project size that leads to criticism of the regular IRR method.
• E)Answers b and c are both correct.

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