Question

What does the MIRR calculation involve?

a.

Calculating the present value of the costs of the project using the project's rate of return

b.

Calculating the present value of the costs of the project using the firm's rate of return

c.

Calculating the future value of the costs of the project using the project's rate of return

d.

Calculating the future value of the costs of the project using the firm's rate of return

Posted under IC 89 Management Accounting

Answer: (b).Calculating the present value of the costs of the project using the firm's rate of return Explanation:The MIRR calculation involves calculating the present value of the costs of the project using the firm's rate of return as the discount rate.

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