Which of the following statements about the modified internal rate of return is CORRECT? The modified internal rate of return (MIRR) is a better measure of a project's return than the internal rate of return (IRR) because MIRR assumes that the project's cash flows can be reinvested at the project's internal rate of return. The internal rate of return (IRR) is not a good measure of a project's true return. The IRR overstates a project's true return because it assumes that a project's cash flows can be reinvested at the project's internal rate of return. The Modified Internal Rate of Return, however, is a better measure of a project's return because it assumes that a project's cash flows are reinvested at the firm's weighted average cost of capital. None of the statements is correct. Due to the mathematics involved in the equations used to solve for both the internal rate of return and the modified internal rate of return, the solutions for the returns are identical-the answers will always be the same. The modified internal rate of return overstates a project's true return, so that's why the internal rate of return is a better measure of a project's return