Which of the Following Statements Is CORRECT? Assume That the Project

question 17

Multiple Choice

Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows,with one outflow followed by a series of inflows.

• A) A project's MIRR is always less than its regular IRR.
• B) If a project's IRR is greater than its WACC, then the MIRR will be less than the IRR.
• C) If a project's IRR is greater than its WACC, then the MIRR will be greater than the IRR.
• D) To find a project's MIRR, we compound cash inflows at the IRR and then discount the terminal value back to t = 0 at the WACC.
• E) A project's MIRR is always greater than its regular IRR.

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