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Exam 3 review · Lesson 33 of 45

Modified IRR (MIRR)

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Exam 3 review · Lesson 33 of 45 · 13 min

Modified IRR (MIRR)

Compute MIRR by discounting costs and compounding inflows at the cost of capital, even with several negative cash flows, and know how it relates to IRR and NPV.

Inside this lesson

  1. Why this matters
  2. The core idea
  3. The formula
  4. Worked example 1: a simple normal project
  5. Worked example 2: several negative cash flows
  6. Your turn
  7. Calculator steps
  8. Common mistakes
  9. Quick check
  10. Key takeaways

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