A discount rate where the present value of terminal value equals the project cost present value is called ____________?

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Modified internal rate of return - The Modified Internal Rate of Return (MIRR) is the discount rate that makes the present value of the terminal value of cash inflows equal to the present value of project costs. MIRR overcomes some limitations of IRR by assuming reinvestment at the cost of capital, not at the IRR.

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A discount rate where the present value of terminal value equals the project cost present value is called ____________?

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MCQ Detailed View

A discount rate where the present value of terminal value equals the project cost present value is called ____________?

Detailed Explanation

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In cash flow analysis, two projects are compared using a common life approach, which is classified as…

In capital budgeting, the Internal Rate of Return (IRR) of a project is classified as its ____________?…

In evaluating independent projects, the results of Internal Rate of Return (IRR) and Net Present Value…