Modified Internal Rate of Return (MIRR)
- Consider only cash flows during investment period (year 0 and next 10 years)
- Takes into account cost of financing and assumes reinvestment of cash flows at firm's cost of capital
- Assumes cash flows received after investment period ends will also be reinvested at cost of capital

To calculate the present value of cash flows beyond the 10th year, use the perpetuity formula:

1. PV = C / r

Where PV is the present value, C is the cash flow, and r is the discount rate. Use the cash flow that occurs after the 10th year and the cost of capital as the discount rate.