Question
The MIRR function eliminates multiple IRRs and should replace NPV.
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True false question.
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Answers
Answered by
GPT-4o mini
False.
The MIRR (Modified Internal Rate of Return) does not replace NPV (Net Present Value); rather, it is an alternative method for evaluating investment projects that addresses some limitations of the IRR method, such as the issue of multiple IRRs. NPV and MIRR are both useful metrics for investment analysis, but they serve different purposes and are used in conjunction rather than one replacing the other.
The MIRR (Modified Internal Rate of Return) does not replace NPV (Net Present Value); rather, it is an alternative method for evaluating investment projects that addresses some limitations of the IRR method, such as the issue of multiple IRRs. NPV and MIRR are both useful metrics for investment analysis, but they serve different purposes and are used in conjunction rather than one replacing the other.
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