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 If the net present value (NPV) of a project is positive,: the project's discounted payback period is longer than the useful life of the project. the project is not acceptable. the project's discounted payback period is less than its traditional payback period. the internal rate of return is lower than the firm's required rate of return. accepting the project will increase the value of the firm