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MIRR

Former userFormer user5y ago

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John MoffatJohn MoffatTutor5y ago#1
The MIRR is really just a way of arriving at a measure that can be used in the same way as the IRR but that will always arrive at the same decision when comparing investments as does choosing the one with the highest NPV. Although standardly we take about the assumption regarding reinvestment, it is actually meaning that the returns are used to pay of borrowings and therefore save interest at the cost of capital.
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