Which of the following statements is most correct? The modified IRR (MIRR) method:
A) Always leads to the same ranking decision as NPV for independent projects.
B) Overcomes the problem of multiple rates of return.
C) Compounds cash flows at the cost of capital.
D) Overcomes the problems of cash flow timing and project size that lead to criticism of the regular IRR method.
E) Answers b and c are correct.

Question

Quizplus · Accepted Answer

The MIRR method overcomes the problem of multiple rates of return and compounds cash flows at the cost of capital, addressing some limitations of the regular IRR method.

Which of the Following Statements Is Most Correct? the Modified