The modified internal rate of return is specifically designed to address the problems associated with which one of the following?
A)mutually exclusive projects
B)unconventional cash flows
C)long-term projects
D)negative net present values
E)crossover points

Question

Quizplus · Accepted Answer

The modified internal rate of return (MIRR) addresses the problems associated with unconventional cash flows, where a project has multiple positive and negative cash flows. MIRR provides a consistent and accurate rate of return for these types of projects, whereas traditional IRR may provide multiple solutions or may not provide a solution at all. MIRR is not specifically designed for mutually exclusive projects, long-term projects, negative net present values, or crossover points.

The Modified Internal Rate of Return Is Specifically Designed to Address