Modified Internal Rate of Return (MIRR) Is the Discount Rate

question 22

Multiple Choice

Modified internal rate of return (MIRR) is the discount rate that forces the present value of a project's terminal value to equal the _____. 

• A)future value of its purchase price
• B)future value of its cash outflows
• C)present value of its cash inflows
• D)future value of its cash inflows
• E)present value of its cash outflows

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Definitions:

Net Income

The net income of a company once all costs, taxes, and expenses are deducted from the total revenue.

Personal Use

The use of an asset or product for individual rather than commercial or professional purposes.

Capital Contributions

Funds or assets contributed to a company by owners or shareholders, typically used to fund business operations or expansion.

Total Share

The aggregate number of shares that represents ownership in a company, including both common and preferred stock.