Modified Internal rate of return Formula





MIRR = Modified internal rate of return


n = No. of periods or years or Total life span of the project or investment


t = Period in which cash flow occur  


Cash inflow= The amount of return on investment


Cash outflow = The amount of investment

Description:

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.