The modified internal rate of return (MIRR) is the discount rate that forces the future value of the project's terminal value to equal the present value of its costs present value of the project's terminal value to equal the present value of its costs (cash outflows) present value of the project's terminal value to equal the sum of its undiscounted cash inflows present value of the project's terminal value to equal the future value of its costs future value of the project's terminal value to equal the future value of its cash outflows