The modified IRR (MIRR) is
a)found as the sum of the future values of the cash inflows
b)the cash outflows compounded at the firm's IRR
c)The discount rate at which the present value of a project's cost is equal to the present value of its terminal value
d)the reinvestment rate built into the NPV calculation
Please find below the solution…………let me know if you need any clarification.
Correct answer is option : d)the reinvestment rate built into the NPV calculation
MIRR assume the different reinvestment rate compared to IRR.
The modified IRR (MIRR) is a)found as the sum of the future values of the cash...