Term of the Day: Modified Internal Rate Of Return - MIRR

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	INVESTOPEDIA Term Of The Day June 22, 2015 Modified Internal Rate Of Return - MIRR While the internal rate of return (IRR) assumes the cash flows from a project are reinvested at the IRR, the 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. Investopedia Explains: For example, say a two-year project with an initial outlay of $195 and a cost of capital of 12%, will return $121 in the first year and... Read More Articles Related to "Modified Internal Rate Of Return - MIRR" The Importance Of LIBOR In Financial Markets ICE LIBOR, which stands for the International Exchange London Interbank Offered Rate, is a set of daily average rates at which banks... Read More Modified Internal Rate of Return (MIRR) Modified internal rate of return (MIRR) is a variant of the more traditional internal rate of return calculation. Like the regular version of IRR, MIRR is used... Read More Taking Stock Of Discounted Cash Flow At a time when financial statements are under close scrutiny, the choice of what metric to use for making company valuations has become... Read More Recently Added Definitions Assistance Agreement An agreement between a lending government, financial institution, or other organization and a borrower that outlines the... Read More Asset Condition Assessment A report outlining how an organization can manage capital assets in order to improve its asset... Read More Related Definitions Net Present Value - NPV Cost Of Capital Pooled Internal Rate Of Return - PIRR Discounted Cash Flow - DCF Cash Flow Past Terms of the Day Equity Market Ordinary Shares Glide Path Exchange-Traded Mutual Funds (ETMF) Stochastic Oscillator You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Unsubscribe From All | Manage Profile Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: