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In capital budgeting, the IRR implicitly assumes reinvestments of interim cash flows at the IRR itself. First, discuss why this assumption is problematic. Then, explain
In capital budgeting, the IRR implicitly assumes reinvestments of interim cash flows at the IRR itself. First, discuss why this assumption is problematic. Then, explain how MIRR address this issue by presenting your own unique example of cash flows with proper calculations of a terminal cash flow. The example project should be a year project. For example, cash flows might look like, $$$ $$$ $$$ $$$ at T to respectively.
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