MIRR

MIRR(valueArray, financeRate, reinvestRate)

Returns a number specifying the modified internal rate of return for a series of periodic cash flows (payments and receipts).

Parameters

• valueArray - A Number or Currency type array that specifies cash flow values. The array must contain at least one negative value (a payment) and one positive value (a receipt). The cash flows must occur at regular intervals such as monthly or yearly.
• financeRate - A Number that specifies the interest rate paid as the cost of financing.
• reinvestRate - A Number that specifies the interest rate received on gains from cash reinvestment.

Return value

Number value.

Example

Suppose that you run a business that makes equipment investments, which results in a loss in the first and fourth years. Your expected annual returns are: -$60,000, $60,000, $45,000, -$50,000, $65,000, $40,000. Your losses are financed at 10 percent while you reinvest your earnings in an account at 6 percent. The modified internal rate of return is:

MIRR([-60000, 60000, 45000, -50000, 65000, 40000], 0.10, 0.06) - Returns 0.1929 (rounded to 4 decimals) or 19.29 percent.