[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-30285":3,"doc-seo-30285":21},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"file_id":15,"file_url":16,"file_type":17,"file_size":18,"view_count":4,"is_deleted":4,"is_public":19,"is_downloadable":19,"audit_status":19,"update_tm":20},30285,2336464648746,"Skyler","https://ap-avatar.wpscdn.com/davatar_276721f389ce27ea32af1340a28f341c",8,"Research & Report","Modified Internal Rate of Return","The Modified Internal Rate of Return (MIRR) is a financial metric used to evaluate the profitability of an investment or project. It represents the percentage yield of a project, assuming that cash flows generated are reinvested at the company's cost of capital. This contrasts with the Internal Rate of Return (IRR), which assumes reinvestment at the IRR itself, a scenario often considered less realistic. MIRR provides a more conservative and accurate reflection of a project's true return. The document outlines two methods for calculating MIRR. Method 1 involves using the present value of the 'return phase' (PVR) and the present value of the 'investment phase' (PVI), along with the project's life (n) and the firm's cost of capital (re). The formula presented for Method 1 is MIRR = [PVR/PVI]^(1/n) * (1 + re) - 1. Method 2, shown in an image, utilizes the end of the investment period's investment returns and the present value of the capital investment in the investment phase. An advantage of MIRR is its more realistic reinvestment assumption. However, a potential disadvantage is that it might lead to rejecting projects that, despite a lower rate of return, contribute more significantly to overall wealth creation due to their size, or it may favor projects with shorter lifespans over those with longer, more substantial returns. The document includes an example calculation where both methods yield a MIRR of 11.20% with a cost of capital of 10%.","cbCaickbUFSOmP35","https://ap.wps.com/l/cbCaickbUFSOmP35","pdf",810253,1,1778286415,{"code":4,"msg":22,"data":23},"ok",{"site_id":24,"language":25,"slug":26,"title":13,"keywords":27,"description":14,"schema_data":28,"social_meta":62,"head_meta":64,"extra_data":66,"updated_unix":20},105,"en","modified-internal-rate-of-return","",{"@graph":29,"@context":61},[30,47],{"@type":31,"itemListElement":32},"BreadcrumbList",[33,37,41,44],{"item":34,"name":35,"@type":36,"position":19},"https://docshare.wps.com","Home","ListItem",{"item":38,"name":39,"@type":36,"position":40},"https://docshare.wps.com/document/","Document",2,{"item":42,"name":12,"@type":36,"position":43},"https://docshare.wps.com/document/research-report/",3,{"item":45,"name":13,"@type":36,"position":46},"https://docshare.wps.com/document/modified-internal-rate-of-return/30285",4,{"url":45,"name":13,"@type":48,"author":49,"headline":13,"publisher":51,"fileFormat":54,"description":14,"dateModified":55,"datePublished":55,"encodingFormat":54,"isAccessibleForFree":56,"interactionStatistic":57},"DigitalDocument",{"name":9,"@type":50},"Person",{"url":34,"name":52,"@type":53},"DocShare","Organization","application/pdf","2026-05-09",true,{"@type":58,"interactionType":59,"userInteractionCount":4},"InteractionCounter",{"@type":60},"ViewAction","https://schema.org",{"og:url":45,"og:type":63,"og:title":13,"og:site_name":52,"og:description":14},"article",{"robots":65,"canonical":45},"index,follow",{"doc_id":7,"site_id":24}]