Start learning →

MIRR's assumed reinvestment rate is usually the project's what?

ACorporate tax rate
BCost of capital
CInternal rate itself
DInflation rate
Answer & Solution
Correct answer: B. Cost of capital
Interim cash flows are assumed to earn what the firm's funds cost, not the project's own IRR.
Practise this question with Quill — CA Inter →

Keep practising Capital Budgeting Basics

Browse all Capital Budgeting Basics questions for CA Inter, or explore more Financial Management topics.

Start a Capital Budgeting Basics lesson →
Related questions