alleryStart learning →Why can MIRR mislead when ranking projects of unequal size?
ABigger projects cannot be discounted
BA bigger one may have lower MIRR, higher NPV
CMIRR ignores the reinvestment rate
DSmall projects always give negative MIRR
Answer & Solution
Correct answer: B. A bigger one may have lower MIRR, higher NPV
MIRR is a percentage, so a large project with a smaller percentage can still add more rupee value.
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Related questions
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