Investment Decision Rules - Alternative Decision Rules - Modified Internal Rate of Return

4 important questions on Investment Decision Rules - Alternative Decision Rules - Modified Internal Rate of Return

What are modified cash flows? (NPV, Modified internal rate of return)

The single cash flow equivallent to the sum of different cash flows in a project, this way a project can be valuated with one cash in flow and one cash out flow

What discount rate should one use when modifying the cash flows for the MIRR technique?

The (estimated) cost of capital

When should a project be accepted when solved for r according to the MIRR rule?

When r > cost of capital
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Does the MIRR rule give different conclusions than the NPV rule?

No

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