The Modified Internal Rate of Return

question 95

Multiple Choice

The modified internal rate of return:

• A)is used as the discount rate for all NPV calculations.
• B)applies only to profitability calculations.
• C)is used to make accept/reject decisions when no discount rate can be assigned.
• D)is computed by combining cash flows until only one change in sign remains.
• E)assumes all projects are financing projects.

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