Question

One of the less flattering interpretations of the acronym MIRR is "meaningless internal rate of return." Why do you think this term is applied to MIRR?

   One of the less flattering interpretations of the acronym MIRR is "meaningless internal rate of return." Why do you think this term is applied to MIRR?

Fundamentals of Corporate Finance

Fundamentals of Corporate Finance

Stephen A. Ross;… 11th Edition

Chapter 9, Problem 13

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It takes into account the timing and magnitude of cash flows, making it a more accurate measure than the traditional Internal Rate of Return (IRR). However, the term "meaningless internal rate of return" is applied to MIRR because it suggests that the metric may Show more…

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One of the less flattering interpretations of the acronym MIRR is "meaningless internal rate of return." Why do you think this term is applied to MIRR?

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