Modified internal rate of return

Modified Internal Rate of Return (MIRR) is a financial metric used to evaluate the attractiveness of an investment or project. It improves upon the traditional Internal Rate of Return (IRR) by addressing some of its limitations, particularly the assumptions made regarding reinvestment rates. Here's a breakdown of MIRR: 1. **Definition**: MIRR modifies the IRR by taking into account the cost of capital and the reinvestment rate for cash flows.