Which of the following statements is most correct?
A) The MIRR method will always arrive at the same conclusion as the NPV method.
B) The MIRR method can overcome the multiple IRR problem, while the NPV method cannot.
C) The MIRR method uses a more reasonable assumption about reinvestment rates than the IRR method.
D) Statements a and c are correct.
E) All of the above statements are correct.

Question

Quizplus · Accepted Answer

The MIRR method assumes reinvestment at the project's cost of capital, which is more realistic than the IRR method's assumption of reinvestment at the IRR itself.

Which of the Following Statements Is Most Correct