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“MIRR gives the maximum cost of finance that the firm could sustain and allow the project to remain worthwhile.”
Sir I always thought that MIRR gave us the return from the project if the cash surpluses were reinvested at the firm’s cost of finance. But nothing like the above sentence!
Both sentences are true!
If the cost of capital is less than the MIRR then the project is worthwhile. If it is more than the MIRR then it is not worthwhile.
