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  3. Study Set
    Financial Management Theory and Practice Study Set 4
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    Exam 10: The Basics of Capital Budgeting: Evaluating Cash Flows
  5. Question
    When Evaluating Mutually Exclusive Projects, the Modified IRR (MIRR) Always
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When Evaluating Mutually Exclusive Projects, the Modified IRR (MIRR) Always

Question 10

Question 10

True/False

When evaluating mutually exclusive projects, the modified IRR (MIRR) always leads to the same capital budgeting decisions as the NPV method, regardless of the relative lives or sizes of the projects being evaluated.

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