Asked by
Chun Hong Leung
on Dec 01, 2024Verified
The MIRR assumes that cash inflows are reinvested at the internal rate of return.
MIRR
Modified Internal Rate of Return; a financial metric that adjusts the traditional IRR to account for differences in reinvestment rates and financing costs.
Internal Rate
Commonly known as the Internal Rate of Return (IRR), it represents the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero.
- Acknowledge the impact of reinvestment assumptions on project evaluation methods.
Verified Answer
AG
Learning Objectives
- Acknowledge the impact of reinvestment assumptions on project evaluation methods.