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.

Comprehend the challenges of complexity and interconnectedness in future global society for enterprises.

Identify negative perceptions associated with creativity and their impact.

Familiarize with the concept and steps of an idea box in creativity.

Realize the direct positive relationship between creativity and organizational effectiveness.

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Definitions:

Equity

Represents the shareholder's ownership interest in a company, calculated as the difference between total assets and total liabilities.

Debt-Equity Ratio

An evaluation of corporate leverage, calculated by the division of a company's total liabilities by the equity of its shareholders.

Increased

Refers to a situation where there has been a rise in quantity, value, or size of a particular item or variable.

Declined

A term used when an offer, proposal, or transaction has been refused or not accepted.