MIRR AND IRR

Financial Management

IRR means the rate at which pvci = pvco .... Then what is called modified IRR What is the difference between IRR and modified IRR

Vignesh Hari Krishnaa Karthigayan

CA Inter

★ 5

06-Nov-21 10:11

687

Answers (6)

MIRR :The discount rate which equates the present value of the terminal cash inflow to the zeroth year outflow is called the MIRR.

Miradevi S

CA Final

★ 16K+

06-Nov-21 10:31

Miradevi S

MIRR :The discount rate which equates the present value of the terminal cash inflow to the zeroth year outflow is called the MIRR.

Can't understand please tell me a example..ð?¥º

Thread Starter

Vignesh Hari Krishnaa Karthigayan

CA Inter

★ 5

06-Nov-21 10:51

If cash flows for say 4 years are given then we have to calculate single future value of all these cash flows and then bringing it to 0th year using FV=PV(1+r)^n

Miradevi S

CA Final

★ 16K+

06-Nov-21 11:39

In that we calculate r

Miradevi S

CA Final

★ 16K+

06-Nov-21 11:41

Miradevi S

In that we calculate r

Ok can understand it

Thread Starter

Vignesh Hari Krishnaa Karthigayan

CA Inter

★ 5

06-Nov-21 11:52

Thread Starter

Vignesh Hari Krishnaa Karthigayan

Ok can understand it

In book you have one illustration based on MIRR if u solve it you Will understand better

Miradevi S

CA Final

★ 16K+

06-Nov-21 12:02