How Does Modified Internal Rate of Return (MIRR) Differ from IRR

question 10

Multiple Choice

How does modified internal rate of return (MIRR) differ from IRR?

• A)MIRR does not consider cash flows occurring after the cut-off date.
• B)MIRR uses NPV, IRR does not.
• C)MIRR calculates the PV of cash inflows and then divides by the PV of the investment.
• D)MIRR reduces the number of sign changes in a cash flow sequence.

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