Which of the following is a capital budgeting technique that converts a project's cash flows using a more consistent reinvestment rate prior to applying the internal rate of return, IRR, decision rule?
A) Discounted payback
B) Net present value
C) Modified internal rate of return
D) Profitability index

Question

Quizplus · Accepted Answer

The Modified Internal Rate of Return (MIRR) is a capital budgeting technique that addresses the reinvestment rate assumption issue in the traditional IRR method by assuming reinvestment at a more realistic rate, typically the firm's cost of capital or the financing cost, leading to a more accurate assessment of a project's profitability.

Which of the Following Is a Capital Budgeting Technique That