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Which of the Following Statements Is True of the Modified

Question 52

Multiple Choice

Which of the following statements is true of the modified internal rate of return?


A) The discount rate that forces the future value of the terminal value to equal the future value of the costs is the modified internal rate of return (MIRR) .
B) The discount rate that forces the present value of the terminal value to equal the present value of the costs is the modified internal rate of return (MIRR) .
C) The required rate of return that forces the future value of the terminal value to equal the present value of the costs is the modified internal rate of return (MIRR) .
D) The discount rate that forces the present value of the terminal value to equal the future value of the costs is the modified internal rate of return (MIRR) .
E) The discount rate that forces the present value of the terminal value to equal the sum of undiscounted cash inflows is the modified internal rate of return (MIRR) .

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