Which of the Following Is NOT a Valid Method of Modifying

question 66

Multiple Choice

Which of the following is NOT a valid method of modifying cash flows to produce a MIRR?

• A) Discount all of the negative cash flows to time 0 and leave the positive cash flows alone.
• B) Leave the initial cash flow alone and compound all of the remaining cash flows to the final period of the project.
• C) Discount all of the negative cash flows to the present and compound all of the positive cash flows to the end of the project.
• D) Turn multiple negative cash flows into a single negative cash flow by summing all negative cash flows over the project's lifetime.

---

Definitions:

Neutralizing

Attempting to eliminate thoughts that one finds unacceptable by thinking or behaving in ways that make up for those thoughts and so put matters right internally.

Cognitive-Behavioral Perspective

A psychological approach that emphasizes the role of thought processes and behaviors in understanding and treating mental disorders.

Neutralizing

A psychological mechanism that attempts to counteract or nullify uncomfortable or distressing thoughts and emotions.

Checking Compulsion

A form of obsessive-compulsive disorder characterized by the need to check things repeatedly, such as locks or appliances, driven by fear and anxiety.