¿ES LA TASA INTERNA DE RETORNO MODIFICADA (TIRM) UN MEJOR INDICADOR DE RENTABILIDAD QUE LA TIR ORDINARIA?

Samuel Rebollar, Juvencio Hernández, Eugenio Guzmán, Rodolfo Rogelio Posadas and Sergio Puebla

Revista Mexicana de Agronegocios, 2025, vol. 57, issue July-December 2025

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.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ags:remeag:387603

DOI: 10.22004/ag.econ.387603

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