Compare and Contrast the IRR and the MIRR Statistic

question 66

Essay

Compare and contrast the IRR and the MIRR statistic.

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Definitions:

Depreciation Expense

Strategically spreading out the cost of a concrete asset over the course of its serviceable life.

Operating Cash Flow

A measure of the cash generated by a company's normal business operations, indicating whether a company is able to generate sufficient positive cash flow to maintain and grow its operations.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in its sales volumes, reflecting the proportion of fixed costs in a company's cost structure.

Financial Break-Even

The point at which total revenues equal total costs and expenses, resulting in neither profit nor loss.