The modified internal rate of return can be used to correct for:
A) negative NPV calculations.
B) multiple internal rates of return.
C) undefined payback periods.
D)the net present value will be zero

Question

Quizplus · Accepted Answer

The modified internal rate of return (MIRR) is commonly used in situations where a project has non-conventional cash flows, such as multiple internal rates of return or changes in cash flow direction. MIRR adjusts the cash flows to assume that all cash inflows are reinvested at a specified rate and all outflows are financed at a different rate. This method is used to avoid any issues that may arise when using the traditional internal rate of return method.

The Modified Internal Rate of Return Can Be Used to Correct