Some new issues about the modified internal rate of return

Abstract

The paper mentioned the relationship between the modified internal rate of return MIRR and the net present value NPV in the case of variable interest rates. The correlation between the modified internal rate of return and the internal rate of return IRR even in the case of multiple rates of return is discussed. The conditions for the MIRR to be sandwiched between the IRR and the effective interest rate are also shown. The examples illustrate the broad applicability of the findings and show that, when these conditions are not guaranteed, such as with non-conventional cash flows, the MIRR may not be sandwiched between these two values.