Home / Project/Program / Modified Internal Rate Of Return (MIRR)

Modified Internal Rate Of Return (MIRR)

Project/Program[None][None]

Definition

While the internal rate of return (IRR) assumes the cash flows from a project are reinvested at the IRR, the modified IRR assumes that all cash flows are reinvested at the firm's cost of capital. Therefore, MIRR more accurately reflects the profitability of a project. <a href="http://www.investopedia.com/terms/m/mirr.asp">More information</a>.

Tags

project, cash, cash flow, profit, capital, accuracy, cost