# MIRR v.s. IRR

I don’t see the difference between the MIRR (so called modified IRR) and the IRR… Anyone to help here - possibly with an example? MH

For cash flows ocurring daily…CF1, CF2…MV1 for a month, the IRR method calculates IRR as a daily rate of return (the rate of return is for period between cash flows) while the MIRR method is just re-arranged to calculate monthly return (here the period is that between MVO to MV1) rate R such that (1+r)^30 = (1+R)

What IRR is this? In Excel, etc, the IRR is is the EAR. In any case do not see any difference between MIRR and IRR. Had the same question but decided to skip it since does not seem testable. The phrase that really puzzled me was in Schweser SN Book 1 on page 148 where they said the MIRR " has the effect of changing the traditional IRR from a MWR method to a TWR method". Do not understand but undoubtedly irrelevant for exam.

Ahhh… big deal really… And for semi-annually returns you have the MMIRR? But tks Garch, that helps. Then, I don’t see the reason why IRR would be an MWR method and the MIRR an TWR method !