If a project is acceptable using the IRR criterion,it will also be acceptable using the MIRR criterion.

Question

Quizplus · Accepted Answer

The Modified Internal Rate of Return (MIRR) and Internal Rate of Return (IRR) are both used as capital budgeting techniques to determine the profitability of a potential investment. However, the MIRR method can overcome some of the shortcomings of the IRR method. Therefore, if the project is acceptable using the IRR criterion, it will also be acceptable using the MIRR criterion.

If a Project Is Acceptable Using the IRR Criterion,it Will