IRR assumes that intermediate cash flows are reinvested at a rate equal to the IRR. MIRR allows you to specify a more realistic reinvestment rate, which often gives more accurate results, especially for unusual cash flows.
How to compare projects with different implementation deadlines?
For a correct comparison you can:
Use the annual equivalent annuity
Bring projects to the same maturity by assuming reinvestment
Apply the return on investment index
Consider multiple cycles of a shorter project
What non-financial papua new guinea email list factors should be considered when analyzing performance?
Important non-financial factors include:
Strategic alignment with company goals
Potential for developing new competencies
Impact on reputation and brand
Improving relationships with clients and partners
Social and environmental effects
Compliance with legal requirements
How often should performance assessment be reviewed during project implementation?
The frequency of revision depends on:
Project duration and complexity
Dynamics of the market environment
The presence of key stages or milestones of the project
Significant changes in the terms of implementation
It is generally recommended to re-evaluate at least quarterly or when major project milestones are reached.
Continuously improving your assessment and analysis skills is the key to long-term success in the business world.
What is the difference between Internal Rate of Return (IRR) and Modified Internal Rate of Return (MIRR)?
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