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SteveS, MBA
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Which of the following statements is CORRECT The IRR method

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Which of the following statements is CORRECT?
The IRR method appeals to some managers because it gives an estimate of the rate of return on projects rather than a dollar amount like the NPV method provides.The discounted payback method eliminates all of the problems associated with the payback method. When evaluating independent projects, the NPV and IRR methods often yield conflicting results.To find the MIRR, we discount the TV at the IRR. A project's NPV profile must intersect the x-axis at the project's WACC
CORRECT?The MIRR and NPV decision criteria never conflict.
The IRR method can never be subject to the multiple IRR problem, while the MIRR method can be. One reason why some people prefer the MIRR method to the IRR method is that the MIRR is based on a more reasonable assumption about reinvestment rates than the IRR method.
The higher the WACC, the lower the discounted payback period.
The MIRR method assumes that cash flows are reinvested at the crossover rate.
Submitted: 7 years ago.
Category: Homework
Expert:  SteveS replied 7 years ago.

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