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Spreadsheet Mathematical Functions

Function Wizard Functions

MIRR

Description: Returns a modified internal rate for several periodic cash flows. MIRR considers both the cost of the investment and the interest received on reinvestment of cash.

Syntax: MIRR(Values, Finance_rate, Reinvest_rate)

Values must contain at least one positive value and one negative value to calculate the modified internal rate of return.

If an array or reference argument contains text, logical values or empty cells, those values are ignored; however, cells with the value zero are included.

Remarks:

Example:

Suppose you're a commercial fisherman just completing your fifth year of operation. Five years ago, you borrowed $120,000 at 10 percent annual interest to purchase a boat. Your catches have yielded $39,000, $30,000, $21,000, $37,000 and $46,000. During these years you reinvested your profits, earning 12 percent annually. On a worksheet, your loan amount is entered as -$120,000 in B1, and your five annual profits are entered in B2:B6.

MIRR(B1:B6, 10%, 12%) = 12.61 percent

MIRR(B1:B4, 10%, 12%) = -4.80 percent

MIRR(B1:B6, 10%, 14%) = 13.48 percent

 

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