Which statement about a project's MIRR is correct? Assume that the project being considered has normal cash flows,with one outflow followed by a series of inflows.
A)A project's MIRR is always greater than its regular IRR.
B)A project's MIRR is always less than its regular IRR.
C)If a project's IRR is greater than its WACC, then the MIRR will be less than the IRR.
D)If a project's IRR is greater than its WACC, then the MIRR will be greater than the IRR.

Question

Quizplus · Accepted Answer

MIRR is typically less than IRR when IRR is greater than WACC because MIRR assumes reinvestment at the WACC, which is usually lower than the IRR.

Which Statement About a Project's MIRR Is Correct? Assume That