Which of the Following Statements Is True of the Modified

question 41

Multiple Choice

Which of the following statements is true of the modified internal rate of return?

• A) The discount rate that forces the future value of the terminal value to equal the future value of the costs is the modified internal rate of return (MIRR).
• B) The discount rate that forces the present value of the terminal value to equal the present value of the costs is the modified internal rate of return (MIRR).
• C) The required rate of return that forces the future value of the terminal value to equal the present value of the costs is the modified internal rate of return (MIRR).
• D) The discount rate that forces the present value of the terminal value to equal the future value of the costs is the modified internal rate of return (MIRR).
• E) The discount rate that forces the present value of the terminal value to equal the sum of undiscounted cash inflows is the modified internal rate of return (MIRR).

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