Which one of the following is specifically designed to compute the rate of return on a project that has a multiple negative cash flows that are interrupted by one or more positive cash flows?
A)Average accounting return
B)Profitability index
C)Internal rate of return
D)Indexed rate of return
E)Modified internal rate of return

Question

Quizplus · Accepted Answer

The Modified Internal Rate of Return (MIRR) is specifically designed to handle multiple negative cash flows interrupted by positive cash flows, providing a more accurate reflection of a project's profitability.

Which One of the Following Is Specifically Designed to Compute