Modified Internal Rate of Return (MIRR) And The Multiple IRR Problem

When a project has multiple IRRs, we can modify the original cash flows to calculate a single, "modified" internal rate of return (MIRR) for the project. In this video, I show three different ways in which you can calculate the MIRR to resolve the multiple IRR problem: (a) The Discounting Approach, (b) The Reinvestment Approach, and (c) The Combination Approach. I also show how you can calculate the MIRR in Excel using the =MIRR function in Excel.
ABOUT ME:
My name is Atif Ikram. I am a member of the finance faculty at Arizona State University's W.P. Carey School of Business (wpcarey.asu.ed.... I love to teach! Over the past few years, I have taught a variety of economics and finance courses to undergraduate and graduate students at Rutgers University, Wayne State University, and Lahore University of Management Sciences (LUMS, Pakistan). Presently I teach advance corporate finance courses at ASU.
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[@pearleocean]

I’m so glad I found your videos on finance. Glad to learn from the best teacher and best source 🙏

[@hinobishachi3949]

i was struggling with this MIRR thing but with ur instruction, I now can fully understand it. Thx u sir

[@FinancewithMinh]

Thank you for the well-instructed video

[@gabewinter9406]

Thank you! I finally get why the first cash flow never is multiplied by anything, it is the present value of course, simplifying the negative cash flow converts it to an IRR

[@eduardomaldonadodiaz6644]

Thank you for explaining the multiple IRR problem!

[@meizhang8522]

This is great video! Thank you Prof. Ikram!

[@sachinpatidar7385]

Amazing Sir!

[@Hris22BG]

Great video! Thank you 🙏

[@studypurpose2303]

Dhanyawad sir!

[@danashortan2690]

amazing!

[@habibrahman6615]

THANKS