InvestorWords.com
modified internal rate of return (MIRR)
Definition
MIRR. A modification of another financial concept: the internal rate of return (IRR). Instead of assuming that a project's cash flows are to be invested at the IRR, MIRR assumes that the cash flows are instead invested at the firm's cost of capital (often its weighted average cost of capital). It is designed to better take into account what is done with cash flows once they are received.
Recommended Articles from InvestorGuide.com
Related Videos
Featured Advertiser
Get our free Term of the Day newsletter!



