MIRR Formula

The MIRR formula is used to calculate the rate of return for a project taking into account the finance cost (f) of the cash used to fund the project (negative cash flows), and the rate of return (r) on cash from the project (positive cash flows) reinvested elsewhere.

Last modified November 6th, 2016 by Michael Brown
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Excel IRR Function

The Excel IRR function is used to calculate internal rate of return for a range of cash flows in time value of money calculations, and has the syntax IRR (Values, Guess).

Care must be taken when using the Excel IRR function with cash flows that change sign multiple times though out the term of the project, as it can produce meaningless solutions.

Last modified November 6th, 2016 by Michael Brown
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IRR Internal Rate of Return

The net present value of a series of cash flows is the sum of the present values of each of the cash flows. The internal rate of return (IRR) is the discount rate which will produce a net present value (NPV) of zero.

Last modified November 6th, 2016 by Michael Brown
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