Capital Budgeting
Modified Internal Rate of Return
Definition
What is Modified Internal Rate of Return?
A return measure that uses specified financing and reinvestment rates rather than assuming reinvestment at the IRR.
Example in practice
How This Looks in Practice
MIRR gives a more realistic result for a project with unusual cash flows.
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Related Terms
Capital Budgeting
Net Present Value
Present value of expected cash inflows minus present value of expected cash outflows.
Capital BudgetingInternal Rate of Return
The discount rate that makes a project's net present value equal to zero.
Capital BudgetingPayback Period
The time required for cumulative cash inflows to recover the initial investment.
Company DisclosuresAnnual Report
A yearly publication containing financial statements, management discussion, governance information, and other disclosures.