________ corrects for most,but not all,of the problems of IRR and gives the solution in terms of a return.
A)Profitability Index
B)Discounted Payback Period
C)Net Present Value
D)MIRR

Question

Quizplus · Accepted Answer

MIRR or Modified Internal Rate of Return corrects for most of the problems of IRR, including multiple rates of return, reinvestment rate assumption, and non-normal cash flow. It also provides the solution in terms of a return. However, it does not take into account the size of the investment, which can be a drawback. Therefore, answer D is the best choice, as none of the other options correct for all the problems of IRR while providing a return solution.

________ Corrects for Most,but Not All,of the Problems of IRR