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Modified IRR

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How does the modified internal rate of return include concepts from both the traditional internal rate and the net present value methods?

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The solution discusses how modified internal rate of return includes concepts from both the traditional internal rate and the net present value methods.

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NPV is defined as the difference between an investment's market value and its cost. It is only a good investment if it makes money for the company so a positive NPV will be needed. The projects can be ranked from the most positive NPV to the lowest to determine profitability. This quantitative ranking method is the best to use due to ...

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