The Modified Internal Rate (MIRR)of Return Eliminates The

question 46

Multiple Choice

The modified internal rate (MIRR) of return eliminates the:

• A)average return problem of IRR.
• B)negative cost of capital under the NPV method.
• C)the reinvestment and multiple solutions problems of IRR.
• D)present value problem of the payback period method.

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Definitions:

Special Order

An order for goods or services that is outside the company's normal production routine or product range.

Resale Value

The estimated amount that an asset or good will be sold for at the end of its useful life.

Replenished Material

Materials that have been restocked or resupplied to ensure adequate levels for production.

Relevant Cost

Costs that are directly influenced by a specific business decision and will change as a result of that decision.