Point out the FALSE statement in relation to MIRR method :

CS Executive · Financial and Strategic Management · PYQS · June 2023
Point out the FALSE statement in relation to MIRR method :
(A) Under MIRR method, all cash inflows are assumed to be reinvested at reinvestment rate
(B) This method of calculation eliminates the problem of multiple IRR for projects with abnormal cash flows
(C) A project can simultaneously have positive NPV & MIRR lower than the cost of capital
(D) None of the above

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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