Finance
Calculate modified IRR
=MIRR(B2:B5,B6,B7)How it works in Excel
- B2:B5 are the cash flows.
- B6 is the rate you pay to finance the project.
- B7 is the rate earned when cash is reinvested.
- IRR assumes cash is reinvested at the IRR itself. MIRR lets you set a more realistic rate.
- Format the cell as a percentage.
The idea in general
It is IRR with a realistic view of what happens to the cash along the way.
What I assumed
- The cash flows are in B2:B5, and the two rates are in B6 and B7.
Check the result on your own data before relying on it.