Asked by
Anamae Laudencia
on Dec 01, 2024
Verified
In case of two mutually exclusive projects, the project having the higher MIRR should be preferred.
MIRR
Modified Internal Rate of Return, a financial metric that addresses some of the limitations of the traditional internal rate of return by taking into account different financing and reinvestment rates.
Mutually Exclusive
Conditions or options that cannot occur or be chosen at the same time, requiring a choice to be made between them.
- Grasp the fundamentals of the Internal Rate of Return (IRR) and Modified Internal Rate of Return (MIRR) and their differences.
Verified Answer
RR
Learning Objectives
- Grasp the fundamentals of the Internal Rate of Return (IRR) and Modified Internal Rate of Return (MIRR) and their differences.