Definitions for "FINANCIAL MANAGEMENT RATE OF RETURN"
Keywords:  fmrr, irr, reinvestment, mill, safe
The most significant feature of the FMRR in relation to the Internal Rate of Return (IRR) is its "safe rate" for which future cash flows and cash deficits are invested during a particular period.
A modification of the internal rate of return, designed to eliminate problems encountered when negative cash flows are included in the forecast.
A rate by which cash flows are realistically re-invested as received to project a realistic forecast.