IDEAS home Printed from https://ideas.repec.org/a/ags/remeag/387603.html

¿Es La Tasa Interna De Retorno Modificada (Tirm) Un Mejor Indicador De Rentabilidad Que La Tir Ordinaria?

Author

Listed:
  • Rebollar, Samuel
  • Hernández, Juvencio
  • Guzmán, Eugenio
  • Posadas, Rodolfo Rogelio
  • Puebla, Sergio

Abstract

The objective of this work was to present feasible evidence that the Modified Internal Rate of Return (MIRR) is a better profitability indicator than the ordinary Internal Rate of Return (IRR). The investment project evaluation methodology was used, specifically the manual and Excel method of estimation of both the IRR and the MIRR, with information on the flow of funds for a hypothetical project and a five-year horizon, together with year zero. The results showed that, with a minimum acceptable rate of return (MATR) of 12%, the IRR was 31% and the MIRR was 26%. As long as the cash flow information is not modified, the IRR will be higher, in amount, than the MIRR, the IRR has no relationship with the MIRR but it does have a direct relationship with the MIRR. The latter is capable of correcting the deficiencies of the IRR, reinvests cash flows at the cost of capital and favors the economic-financial feasibility analysis by providing a single, positive rate of return.

Suggested Citation

  • Rebollar, Samuel & Hernández, Juvencio & Guzmán, Eugenio & Posadas, Rodolfo Rogelio & Puebla, Sergio, 2025. "¿Es La Tasa Interna De Retorno Modificada (Tirm) Un Mejor Indicador De Rentabilidad Que La Tir Ordinaria?," Revista Mexicana de Agronegocios, Sociedad Mexicana de Administracion Agropecuaria, vol. 57(July-Dece), December.
    • Handle: RePEc:ags:remeag:387603
    DOI: 10.22004/ag.econ.387603
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/387603/files/V9.%20Rebollar%20-%20Es%20la%20tasa%20interna%20del%20retorno%20modificada%20%28TIRM%29.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.387603?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:remeag:387603. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/somexea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.