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QUESTION 5 What is the proper IRR method to use when considering the reinvestment rate of cash flows and what is that measurement's weakness? a.
QUESTION 5
What is the proper IRR method to use when considering the reinvestment rate of cash flows and what is that measurement's weakness?
a. XIRR. It only uses one reinvestment rate rather than the company's entire reinvestment rate
b. MIRR. It provides too much detail into other company functions
c. MIRR. It can overinflate returns based on an inflated reinvestmnent rate
d. XIRR. It sometimes miscalculates the return since it is so reliant on dates and times.
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