Question
Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of
Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.
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| A projects MIRR is always greater than its regular IRR. |
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| A projects MIRR is always less than its regular IRR. |
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| If a projects IRR is greater than its WACC, then the MIRR will be less than the IRR. |
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| If a projects IRR is greater than its WACC, then the MIRR will be greater than the IRR. |
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| To find a projects MIRR, we compound cash inflows at the IRR and then discount the terminal value back to t = 0 at the WACC. |
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Public Finance And Public Policy
Authors: Jonathan Gruber
2nd Edition
0716766310, 9780716766315
