For a Project with One Initial Cash Outflow Followed by a Series

True/False

For a project with one initial cash outflow followed by a series of positive cash inflows, the modified IRR (MIRR)method involves compounding the cash inflows out to the end of the project's life, summing those compounded cash flows to form a terminal value (TV), and then finding the discount rate that causes the PV of the TV to equal the project's cost.