What is the difference between Internal Rate of Return (IRR) and Modified Internal Rate of Return (MIRR)?

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Mimaktsa10
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What is the difference between Internal Rate of Return (IRR) and Modified Internal Rate of Return (MIRR)?

Post by Mimaktsa10 »

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.
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