Question

Which of the following statements is true? A) MIRR always gives the same accept reject criteria...

Which of the following statements is true?

A) MIRR always gives the same accept reject criteria as IRR

B) MIRR always gives the same accept reject criteria as NPV

C) IRR always gives the same accept reject criteria as NPV

D) MIRR, IRR, and NPV always give the same accept reject criteria

I thought it was D but I'm not sure, should it be B?

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Answer #1

Answer) B - MIRR always gives the same accept reject criteria as NPV

Explanation:

MIRR gives a rate of discounting at which NPV of a project will be zero, hence they are interrelated and will give the same accept/reject decision.

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