Which of the following statements 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

The Modified Internal Rate of Return (MIRR) accounts for the cost of capital and reinvestment rate, often resulting in a value less than the IRR when the IRR is greater than the WACC.

Which of the Following Statements Is Correct? Assume That the Project