Modified Internal Rate of Return (MIRR)
The modified internal rate of return is a version of IRR that assumes positive cash flows are reinvested at the firm's cost of capital and that outlays are financed at its financing cost.
What is Modified Internal Rate of Return (MIRR)?
MIRR fixes two problems with IRR: it gives a single answer for any project and uses a more realistic reinvestment rate, so it tends to give a less optimistic, more accurate picture of profitability. It is useful for ranking projects of different sizes.