Skip to content
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA AFM

MIRR

Uunsworth12y ago
Dear Sir, Can you please explain about the drawbacks of MIRR? Thanks
John MoffatJohn MoffatTutor12y ago#1
MIRR assumes that the proceeds are re-invested at the cost of capital. In practice this is unlikely - more likely they will be re-invested elsewhere at a higher rate.
Sign in to reply to this topic.