Which of the Following Statements Is Most Correct? the Modified

Multiple Choice

Which of the following statements is most correct? The modified IRR (MIRR) method:

A) Always leads to the same ranking decision as NPV for independent projects.
B) Overcomes the problem of multiple rates of return.
C) Compounds cash flows at the cost of capital.
D) Overcomes the problems of cash flow timing and project size that lead to criticism of the regular IRR method.
E) Answers b and c are correct.