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Business, 26.10.2019 02:43 weirdoal567

Which of the following statements is correct? assume that the project being considered has normal cash flows, with one cash outflow at t = 0 followed by a series of positive cash flows.

a) a project's mirr is always greater than its regular irr.
b) a project's mirr is always less than its regular irr.
c) if a project's irr is greater than its wacc, then its mirr will be greater than the irr.
d) to find a project's mirr, we compound cash inflows at the regular irr and then find the discount rate that causes the pv of the terminal value to equal the initial cost.
e) to find a project's mirr, the textbook procedure compounds cash inflows at the wacc and then finds the discount rate that causes the pv of the terminal value to equal the initial cost.

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