The MIRR function calculates the internal rate of return where positive and negative cash flows are financed at different rates. MIRR considers both the cost of the investment and the interest received on reinvestment of cash.

MIRR takes 3 required arguments and no optional arguments:

Syntax: MIRR(values, finance_rate, reinvest_rate)

#1)
Using the MIRR function:
#2)
The arguments for the MIRR function are:
Argument Required? Description
values Required An array or a reference to cells that contain numbers. These numbers represent a series of payments (negative values) and income (positive values) occurring at regular periods.
values must contain at least one positive value and one negative value to calculate the 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.
finance_rate Required The interest rate you pay on the money used in the cash flows.
reinvest_rate Required The interest rate you receive on the cash flows as you reinvest them.

Summary

The MIRR function calculates the internal rate of return where positive and negative cash flows are financed at different rates. MIRR considers both the cost of the investment and the interest received on reinvestment of cash.
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