Evaluating Mutually Exclusive Projects, the Modified IRR (MIRR) Always Leads

question 41

True/False

evaluating mutually exclusive projects, the modified IRR (MIRR) always leads to the same capital budgeting decisions as the NPV method, regardless of the relative lives or sizes of the projects being evaluated.

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Definitions:

Duress

A situation where a person is compelled to perform an act or enter into a contract under threat of violence, harm, or undue pressure.

Doctrine

A system of principles or tenets adopted and propagated by a religious organization, political entity, or similar body.

Consent

Agreement or permission given by a person with full understanding of the facts and implications of an action or decision.

Creditor Beneficiary

A third party that benefits from a contract, especially one to whom a debtor owes a payment or performance.