Modified Internal Rate of Return (MIRR)

The modified internal rate of return (MIRR) is an adaptation of the Internal Rate of Return (IRR). which is intended overcome the limitations of the latter. The MIRR and IRR are widely used by investors to select the most profitable investments.
The IRR has two important limitations, namely:
a) Positive cash flows are reinvested at the same rate of cost of capital;
b) In certain cash flow model are produced multiple results.
The MIRR eliminates these limitations and is used to evaluate alternative investments, such as the IRR.
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To calculate the modified internal rate of return, enter values in chronological order of events, separated by commas, the rates of interest relating to reinvestment and cost of capital. The first event always has a negative sign because it represents the initial disbursement of investment.
Use the point as decimal separator. Ex. For the number 725,162.46 enter 725162.46.
Consider the net value, when in the same period occur inflows and outflows of resources.
The results are automatically displayed after the click on "Calculate".

Related Topics

DuPont Analysis Investments - Net Present Value Discounted Cash Flow (DCF) Internal Rate of Return (IRR) Modified Internal Rate of Return (MIRR) Average Interest Rate Average Rate of Return Break-Even Point in Quantities Break-Even Point (BEP) in Sales French Amortization System Constant Amortization System German Amortization System Sinking Fund American Amortization System Canadian Mortgage Amortization Amortization - Average Constant and French Straight Line Depreciation Method Sum of Digits Depreciation Method (SYD) Balance Sheet Analysis Cash Flow Statement by Direct Method Cash Flow Statement by Indirect Method