The modified internal rate (MIRR) of return eliminates the:

A) average return problem of IRR.
B) negative cost of capital under the NPV method.
C) the reinvestment and multiple solutions problems of IRR.
D) present value problem of the payback period method.

Modified Internal Rate

An adjusted version of the internal rate of return (IRR) calculation that takes into account changes in the cost of capital or cash flow pattern.

Reinvestment Problem

The challenge of effectively reinvesting earnings or capital gains to achieve additional growth or income.

Multiple Solutions

Situations where more than one answer or approach can satisfy the conditions of a problem.