Which of following statements is CORRECT?The MIRR and NPV decision criteria can never conflict One reason some people prefer the MIRR to the regular IRR is that the MIRR is based on generally more reasonable reinvestment rate assumption.The IRR method can never be subject to the multiple IRR problem. while the MIRR method can be.I higher the WACC, the shorter the discounted payback periodThe MIRR method assumes that cash flows are reinvested at the crossover rate.

MIRR : MIRR is one of the capital budgeting techniques, which helps the business organization to…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of following statements is CORRECT?

The MIRR and NPV decision criteria can never conflict
One reason some people prefer the MIRR to the regular IRR is that the MIRR is based on generally more reasonable reinvestment rate assumption.
The IRR method can never be subject to the multiple IRR problem. while the MIRR method can be.
I higher the WACC, the shorter the discounted payback period
The MIRR method assumes that cash flows are reinvested at the crossover rate.

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