Define internal rate of return and modified internal rate

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Define internal rate of return (IRR) and modified internal rate of return (MIRR), accompanied by equations for clarity and preciseness. State significance of each. Provide two fictitious examples of investment in which IRR meets or exceeds the investor's expectation in one, and falls short of expectations in the other. Also, evaluate MIRR for each. You need to assume an opportunity cost to evaluate MIRR. Your example should contain non-uniform cash flows, and number of periods in each case should be at least 5. Provide your explanations and definitions in detail and be precise. Explain your work. Provide references for the content.

Reference no: EM131889800

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