- This topic has 1 reply, 2 voices, and was last updated 1 year ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
PQ Awards Nominations
Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
“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.