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MIRR/NPV

This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.

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November 25, 2014 at 6:52 am #212959
judezz91
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I have a general interpretation doubt.
suppose the npv of a project when discounted at 8% is 1.9m & MIRR of the same project is 9.16%. what is the difference of 1.16% mean?
November 25, 2014 at 9:52 am #213063
John Moffat
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The fact that the MIRR is more that the cost of capital means that the project is worth accepting (it will give an positive NPV at 8%).
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