The modified internal rate of return corrects which problem inherent in IRR?
A) Adjustments for scale differences
B) Difficulty in ranking projects
C) Differing risk attributes of projects
D) Incorporates the time value of money
E) It allows for reinvestment of cash inflows from the project at the firm's cost of capital.

Question

Quizplus · Accepted Answer

The modified internal rate of return allows for reinvestment of cash inflows from the project at the firm's cost of capital.

The Modified Internal Rate of Return Corrects Which Problem Inherent