MIRR

This topic has 1 reply, 2 voices, and was last updated 12 years ago by John Moffat.

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May 11, 2014 at 10:47 am #168305
unsworth
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Dear Sir,

Can you please explain about the drawbacks of MIRR?

Thanks
May 11, 2014 at 12:15 pm #168321
John Moffat
Keymaster
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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.
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