MIRR: Calculating internal rate of return for mixed cash flows


show more MIRR: Calculating internal rate of return for mixed cash flows provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2010: Financial Functions in Depth show less
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MIRR: Calculating internal rate of return for mixed cash flows

Investing money can become quite complicated. For example, you might need to borrow the money you invest in some other project. You could also reinvest any proceeds from that project into another investment and get a gain on that money. If you need to calculate the internal rate of return for a series of mixed cash flows then you can use the MIRR function. The MRR function has arguments which are the interest rate on the initial loan, and the interest rate on any reinvested funds, and then also the cash flows themselves.

So in this worksheet I have the interest rate on the initial loan. So let's say that you have a construction project and you borrow this money for use in that project. And then let's say that you are getting money back on your investment and the interest rate on the reinvested funds is 5%. So in other words, you're borrowing $150,000 and then you're paying 9% per year on that and then all the moneys you get back, which are in cells B7 to B13, you're re...

MIRR: Calculating internal rate of return for mixed cash flows
Video duration: 2m 2s 2h 18m Intermediate

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MIRR: Calculating internal rate of return for mixed cash flows provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2010: Financial Functions in Depth

Subjects:
Business IT
Software:
Excel
Author:
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