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| % Safe Rate for Modified Internal Rate of Return: |
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| % Reinvest Rate for Modified Internal Rate of Return: |
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| Initial Investment |
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| Cash Flow, End of Year 1 |
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| Cash Flow, End of Year 2 |
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| Cash Flow, End of Year 3 |
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| Cash Flow, End of Year 4 |
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| Cash Flow, End of Year 5 |
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| Cash Flow, End of Year 6 |
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| Cash Flow, End of Year 7 |
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| Cash Flow, End of Year 8 |
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| Cash Flow, End of Year 9 |
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| Cash Flow, End of Year 10 |
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| Modifiied Internal Rate of Return |
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Automatic Recalculation
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Modified Internal Rate of Return (MIRR)
The MIRR calculation takes any negative cash flows, zeroes them out and discounts them at the safe rate back to day one of the investment period. You can consider the safe rate to be the interest rate at which you can put money aside, in a secure and reasonably liquid form, so that it will grow to meet the amount needed to cover the negative cash flows.
MIRR takes positive cash flows and compounds them forward to the sale year, using the reinvestment rate (also known as the risk rate). The reinvestment rate is the rate at which you believe you could reinvest your positive cash flows.
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