Documentation

# mirr

Modified internal rate of return

## Syntax

```Return = mirr(CashFlow,FinRate,Reinvest)
```

## Arguments

 `CashFlow` Vector of cash flows. The first entry is the initial investment. `FinRate` Finance rate for negative cash flow values. Enter as a decimal fraction. `Reinvest` Reinvestment rate for positive cash flow values, as a decimal fraction.

## Description

`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`.

## Examples

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%.

 Year 1 \$20,000 Year 2 (\$10,000) Year 3 \$30,000 Year 4 \$38,000 Year 5 \$50,000

To calculate the modified internal rate of return on the investment

```Return = mirr([-100000 20000 -10000 30000 38000 50000], 0.09,... 0.12) ```

returns

```Return = 0.0832 (8.32%) ```

## References

Brealey and Myers. Principles of Corporate Finance. Chapter 5.

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