Which expression describes the modified internal rate of return (MIRR)?
AThe accounting profit divided by sales
BThe present value of the hurdle rate
CThe rate equating the present value of costs with the future value of positive cash flows
DThe future value of the hurdle rate
Correct answer
C. The rate equating the present value of costs with the future value of positive cash flows
Explanation
The rate equating the present value of costs with the future value of positive cash flows is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.