MIRRs are generally lower and more realistic than the IRRs.

Name: MIRRs are generally lower and more realistic than the IRRs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

MIRRs take into account the reinvestment rate of cash flows, which is more realistic than assuming the same rate of return as the initial investment (as with IRRs). Therefore, MIRRs tend to be lower and more accurate representations of the potential profitability of an investment.

MIRRs Are Generally Lower and More Realistic Than the IRRs