What is modified internal rate of return?
MIRR: a return measure that replaces IRR’s implicit reinvestment-at-the-IRR assumption with explicit, separate financing and reinvestment rates. On the worked deal, 8.41% at a 5.0% reinvestment rate versus an 8.57% IRR.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.