- Trending Categories
- Data Structure
- Networking
- RDBMS
- Operating System
- Java
- iOS
- HTML
- CSS
- Android
- Python
- C Programming
- C++
- C#
- MongoDB
- MySQL
- Javascript
- PHP

- Selected Reading
- UPSC IAS Exams Notes
- Developer's Best Practices
- Questions and Answers
- Effective Resume Writing
- HR Interview Questions
- Computer Glossary
- Who is Who

The major differences between internal rate of return (IRR) and modified internal rate of return are as follows −

Internal rate of return (IRR)

- Calculates discount rate based on internal factors.
- NPV = 0.
- Cash flows are Reinvested at project’s IRR.
- Provides two solutions.
- Less accurate.
- Higher than MIRR.
- Low precision.

Modified internal rate of return

- Cost of capital is used in calculations.
- NPV = investment (outflow).
- Cash flows are reinvested at firm rate of return.
- Provides one solution.
- More accurate.
- More realistic than IRR.
- High precision.

- Related Questions & Answers
- Explain modified internal rate of return.
- Differentiate between rate of interest and internal rate of return.
- Differentiate between discounted Net present value and Internal rate of return.
- What is Required Rate of Return (RRR)?
- Write the difference between discount rate and interest rate.
- How to calculate Expected Rate of Return(ERR)
- Differences between Bit Rate and Baud Rate
- Difference Between Internal and External fragmentation
- Difference between Internal Fragmentation and External Fragmentation
- What are the differences between interest rate and annual percentage rate?
- Differentiate between floating currency exchange rate and fixed currency exchange rate
- How would you differentiate Opportunity Cost of Capital from Required Rate of Return (RRR)?
- How to find the rate of return for a vector values in R?
- Compare marginal tax rate and effective tax rate.
- Compare fixed interest rate and floating interest rate

Advertisements