Capital Budgeting
Modified Internal Rate of Return
Definition
What is Modified Internal Rate of Return?
A return measure that uses specified financing and reinvestmentUsing distributions or proceeds to buy additional units instead of receiving cash. 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.
Keep learning
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.