alleryStart learning →MIRR was designed to fix which weakness of IRR?
AIgnoring time value of money
BUsing accounting profits
CIgnoring the project's size
DReinvestment assumed at the IRR
Answer & Solution
Correct answer: D. Reinvestment assumed at the IRR
IRR implicitly lets interim inflows earn the project's own IRR, while MIRR reinvests them at a second, more realistic rate.
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