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vova2212 [387]
3 years ago
15

Business executives often prefer to work with rate of return, so to overcome some of the IRR's limitations the modified IRR was

devised. The MIRR equation is:
Business
1 answer:
Ksju [112]3 years ago
5 0

Answer:

Explanation:

MIRR equation is given by :

[(FV +ve cashflow / PV -ve cashflow)^(1/n)] - 1

FV +ve cashflow = Future value of positive cashflow at reinvestment rate

PV - ve cashflow = Present value of negative cashflow at finance rate

n = number of periods

The Modified Internal Rate of Return is a devised modification for the Internal rate of return, IRR which gives rate of return on percentage and overcomes the limitations of the IRR formula.

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