Which of the following statements is correct?

a) The MIRR and NPV decision criteria can never conflict.

b) The IRR method can never be subject to the multiple IRR problem, while the MIRR method can be.

c) One reason some people prefer the MIRR to the regular IRR is that the MIRR is based on what is generally a more reasonable assumption about the reinvestment rate than the regular IRR.

d) The higher the WACC, the shorter the discounted payback period.

e) The MIRR method assumes that cash flows are reinvested at the crossover rate.


  • avatar
    mathquestions12
    15 Aug 2012 20:38:29 GMT

    Correct Answer is c) - One reason some people prefer the MIRR to the regular IRR is that the MIRR is based on what is generally a more reasonable assumption about the reinvestment rate than the regular IRR.


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