The Multiple Internal Rate of Return (MIRR) Is a Better

question 43

Multiple Choice

The multiple internal rate of return (MIRR) is a better indicator of a project's true profitability because:

• A) only cash flows after payback period are discounted.
• B) of the assumption of a shorter payback period than the maximum cost recovery time established by firm.
• C) it assumes that the cash flows are reinvested at the required rate of return.
• D) of the assumption that the cash flows are reinvested at risk-free rate.
• E) the cash flows are discounted at the internal rate of return.

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