MIRR function
Summary
Returns the modified internal rate of return for a series of cash flows, considering both the cost of investment and the interest received on reinvestment.
Syntax
MIRR(values( ), finance_rate, reinvest_rate)
The MIRR function has these named arguments:
Part
Description
values( )Required. Array of Double specifying cash flow values. The array must contain at least one negative value (a payment) and one positive value (a receipt).
finance_rateRequired. Double specifying interest rate paid as the cost of financing.
reinvest_rateRequired. Double specifying interest rate received on gains from cash reinvestment.
Part
Description
values( )Required. Array of Double specifying cash flow values. The array must contain at least one negative value (a payment) and one positive value (a receipt).
finance_rateRequired. Double specifying interest rate paid as the cost of financing.
reinvest_rateRequired. Double specifying interest rate received on gains from cash reinvestment.
Example
Example
This example uses the MIRR function to return the modified internal rate of return for a series of cash flows contained in the array Values(). LoanAPR represents the financing interest, and InvAPR represents the interest rate received on reinvestment.
Dim LoanAPR, InvAPR, Fmt, RetRate, Msg
Static Values(5) As Double ' Set up array.
LoanAPR = .1 ' Loan rate.
InvAPR = .12 ' Reinvestment rate.
Fmt = "#0.00" ' Define money format.
Values(0) = -70000 ' Business start-up costs.
' Positive cash flows reflecting income for four successive years.
Values(1) = 22000 : Values(2) = 25000
Values(3) = 28000 : Values(4) = 31000
RetRate = MIRR(Values(), LoanAPR, InvAPR) ' Calculate internal rate.
Msg = "The modified internal rate of return for these five cash flows is"
Msg = Msg & Format(Abs(RetRate) * 100, Fmt) & "%."
MsgBox Msg ' Display internal return rate.
This example uses the MIRR function to return the modified internal rate of return for a series of cash flows contained in the array Values(). LoanAPR represents the financing interest, and InvAPR represents the interest rate received on reinvestment.
Dim LoanAPR, InvAPR, Fmt, RetRate, Msg
Static Values(5) As Double ' Set up array.
LoanAPR = .1 ' Loan rate.
InvAPR = .12 ' Reinvestment rate.
Fmt = "#0.00" ' Define money format.
Values(0) = -70000 ' Business start-up costs.
' Positive cash flows reflecting income for four successive years.
Values(1) = 22000 : Values(2) = 25000
Values(3) = 28000 : Values(4) = 31000
RetRate = MIRR(Values(), LoanAPR, InvAPR) ' Calculate internal rate.
Msg = "The modified internal rate of return for these five cash flows is"
Msg = Msg & Format(Abs(RetRate) * 100, Fmt) & "%."
MsgBox Msg ' Display internal return rate.