Which of the Following Is NOT a Valid Method of Modifying

question 82

Multiple Choice

Which of the following is NOT a valid method of modifying cash flows to produce a MIRR?

• A) Discount all of the negative cash flows to the present and compound all of the positive cash flows to the end of the project.
• B) Discount all of the negative cash flows to time 0 and leave the positive cash flows alone.
• C) Leave the initial cash flow alone and compound all of the remaining cash flows to the final period of the project.
• D) Turn multiple negative cash flows into a single negative cash flow by summing all negative cash flows over the project's lifetime.

---

Definitions:

Radar Equipment

Equipment designed to detect the presence, direction, distance, and speed of objects by using radio waves to bounce off the objects and return data.

Continuous

Refers to a variable or process that can assume an infinite number of values within a given range.

Standard Deviation

A measure that is used to quantify the amount of variation or dispersion of a set of data values.

Binomial Distribution

A probability distribution that summarizes the likelihood that a value will take one of two independent states under a given number of parameters.