Modified Internal Rate of Return (MIRR) is a technique used if more than one negative to positive cash flow change occurs. This technique is beyond the scope of this article. Its primary benefit is that it eliminates multiple negative and positive cash flows during the hold period, adjusts for reinvestment during periods of positive cash flow and the cost of borrowing to cover periods of negative cash flow. However, it still suffers from some of the deficiencies associated with Internal Rate of Return. Financial Management Rate of Return Financial Management Rate of Return (FMRR) is a.
