Question
Which of the following statements about IRR and MIRR is correct? (A) IRR assumes that project cash flows are reinvested at IRR but MIRR assumes
Which of the following statements about IRR and MIRR is correct?
(A) IRR assumes that project cash flows are reinvested at IRR but MIRR assumes that project cash flows are reinvested at MIRR.
(B) IRR assumes that project cash flows are reinvested at IRR but MIRR assumes that project cash flows are reinvested at WACC.
(C) IRR assumes that project cash flows are reinvested at WACC but MIRR assumes that project cash flows are reinvested at MIRR.
(D) MIRR is always smaller than IRR in any situation.
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Corporate Valuation A Guide For Managers And Investors
Authors: Phillip R. Daves, Michael C. Ehrhardt, Ron E. Shrieves
1st Edition
0324274289, 978-0324274288
