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Delaney Bradford
on Dec 01, 2024

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The MIRR is an interest rate that:

A) equates the present value of outflows with the present value of the future value of all inflows of a project.
B) equates the present value of all cash inflows with the cost of capital of a project.
C) is used to determine the rate of reinvestment of a project with multiple cash outflows.
D) is used to determine the net present value of a project.

MIRR

Modified Internal Rate of Return (MIRR) is a financial metric that evaluates the profitability of investments, adjusting the internal rate of return (IRR) to account for the reinvestment of cash flows at a different rate.

Present Value

The current value of a future amount of money or stream of cash flows, discounted at a certain interest rate.

Future Value

The amount a present sum will grow into at a specified interest rate over a specified period of time.

  • Comprehend the implicit reinvestment presumptions associated with the Net Present Value (NPV) and Internal Rate of Return (IRR) methodologies.
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Nikki TatarchukDec 02, 2024
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