Abstract
DCF methods, except the case of multiple IRRs, identify good projects when analyzed individually. However, all might conflict when ranking projects. MIRR, a method that addresses the multiple IRR problem, is a complex method for analyzing investments as it includes a reinvestment rate. Most finance textbooks do not discuss, even though some mention, the ranking conflict between NPV and MIRR. Along with the known conflict between NPV and IRR, we present an original method to determine if there is a conflict between NPV and MIRR, and the regions of the discount rate where a conflict is present or not. This method, verified by an Excel analysis, is useful to practitioners and educators alike.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
