Modified internal rate of return
Return = mirr(CashFlow, FinRate, Reinvest)
Finance rate for negative cash flow values. Enter as a decimal fraction.
Reinvestment rate for positive cash flow values, as a decimal fraction.
Return = mirr(CashFlow, FinRate, Reinvest) calculates the modified internal rate of return for a series of periodic cash flows. This function calculates only positive rates of return; for nonpositive rates of return, Return = 0.
This cash flow represents the yearly income from an initial investment of $100,000. The finance rate is 9% and the reinvestment rate is 12%.
To calculate the modified internal rate of return on the investment
Return = mirr([-100000 20000 -10000 30000 38000 50000], 0.09,... 0.12)
Return = 0.0832 (8.32%)