The modified IRR (MIRR) method has wide appeal to academics, but most business executives prefer the NPV method to either the regular or modified IRR.?
Answer the following statement true (T) or false (F)
False
The NPV contains no information about either the safety margin inherent in a project's cash flow forecasts or the amount of capital at risk, but the IRR does provide "safety margin" information. The IRR method has a reinvestment assumption that is probably unrealistic, and that it is possible for projects to have multiple IRRs. Both of these problems can be corrected using the MIRR method. See 9-5: Use of Capital Budgeting Techniques in Practice
You might also like to view...
For a company to dominate its industry in the future, it must lead the customer rather than being customer led
Indicate whether the statement is true or false
Brenda's team was in the process of clarifying outcomes and deliverables in comparison to the organizational strategy and goals. The project management step they are engaged in is
A. developing a timeline. B. establishing checkpoints. C. defining project objectives and scope. D. determining participants and stakeholders.
According to Kurt Lewin's model of the change process, current behavior is maintained when:
A. the forces for the status quo are weakened and the forces for change are increased. B. new attitudes, values, and behaviors are substituted for old ones. C. the force pushing toward preserving the status quo and the force pushing for change are approximately equal. D. old behaviors are discarded by shaking up the equilibrium state that maintains the status quo.
Convertible bonds have? 1. an indenture 2. perpetual life 3. a specified conversion price
A. ??1 and 2 B. ?1 and 3 C. ?2 and 3 D. ?1, 2, and 3