Modified Internal Rate of Return
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Investment and funding appraisal - internal rate of return (IRR) - re-invested funds.
(MIRR).
Modified Internal Rate of Return is a refinement of the internal rate of return (IRR).
Modified Internal Rate of Return assumes a pre-determined reinvestment rate for any surplus cash flows during the life of the proposal being appraised.
This is different from the assumption in the usual IRR calculation, which assumes re-investment at the IRR itself.
MIRR is sometimes known as the external rate of return.
See also
- Comparator
- Compound Annual Growth Rate
- Cost of capital
- Cost of debt
- Discount
- Discount rate
- Discounted cash flow
- Effective interest rate
- Funding
- Hurdle rate
- Implied rate of interest
- Incremental borrowing rate
- Interest rate implicit in a lease
- Internal rate of return (IRR)
- Interpolation
- Investment appraisal
- Iteration
- Linear interpolation
- Market yield
- Net present value (NPV)
- Opportunity cost
- Payback period
- Present value (PV)
- Profitability index (PI)
- Rate of return
- Return on investment
- Shareholder value
- Time value of money (TVM)
- Total shareholder return (TSR)
- Weighted average cost of capital
- Yield
- Yield to maturity
