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Define the term "Modified Internal Rate of Return".

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Question ajoutée par Utilisateur supprimé
Date de publication: 2014/08/09
Kamran Anjum
par Kamran Anjum , Head of Internal Audit , Rafhan Maize Products Company limited, Faisalabad, Pakistan, Ingredion Incorporated Gmbh

Modified IRR assumes that positive cash flows are reinvested at the firm's cost of capital, and the initial outlays are financed at the firm's financing cost. On the other hand simple internal rate of return (IRR) assumes the cash flows from a project are reinvested at the IRR. Basic difference is in the mode of re-investment (Rate) Therefore, MIRR more accurately reflects the cost and profitability of a project.  

mohammed ismail
par mohammed ismail , Group Accounting Manager , AMS Holding Group

The Modified Internal Rate of Return (MIRR) is a financial measure of an investment's attractiveness.It is used in capital budgeting to rank alternative investments of equal size. As the name implies, MIRR is a modification of the internal rate of return (IRR) and as such aims to resolve some problems with the IRR.

Prince Ninan
par Prince Ninan , Audit Executive , Lewis & Pecker

modified IRR assumes that positive cash flows are reinvested at the firm's cost of capital, and the initial outlays are financed at the firm's financing cost. Therefore, MIRR more accurately reflects the cost and profitability of a project. 

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