MIRR(Double, Double, Double) Method
Returns a value specifying the modified internal rate of return for a series of periodic cash flows (payments and receipts).
public: static double MIRR(cli::array <double> ^ % ValueArray, double FinanceRate, double ReinvestRate);
public static double MIRR (ref double ValueArray, double FinanceRate, double ReinvestRate);
static member MIRR : Double * double * double -> double
Public Function MIRR (ByRef ValueArray As Double(), FinanceRate As Double, ReinvestRate As Double) As Double
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).
Required. The interest rate paid as the cost of financing.
Required. The interest rate received on gains from cash reinvestment.
The modified internal rate of return for a series of periodic cash flows (payments and receipts).
ValueArray does not equal 1,
FinanceRate = -1, or
ReinvestRate = -1
Division by zero has occurred.
This example uses the
MIRR function to return the modified internal rate of return for a series of cash flows contained in the array
LoanAPR represents the financing interest, and
InvAPR represents the interest rate received on reinvestment.
' Define money format. Dim MoneyFmt As String = "###,##0.00" ' Define percentage format. Dim PercentFmt As String = "#0.00" Dim values(4) As Double ' Business start-up costs. values(0) = -70000 ' Positive cash flows reflecting income for four successive years. values(1) = 22000 values(2) = 25000 values(3) = 28000 values(4) = 31000 ' Use the MIRR function to calculate the internal return rate. ' Set the loan rate. Dim LoanAPR As Double = 0.1 ' Set the reinvestment rate. Dim InvAPR As Double = 0.12 ' Calculate internal rate. Dim RetRate As Double = MIRR(values, LoanAPR, InvAPR) ' Display internal return rate. MsgBox("The modified internal rate of return for these cash flows is " & Format(Math.Abs(RetRate) * 100, CStr(PercentFmt)) & "%.")
The modified internal rate of return is the internal rate of return when payments and receipts are financed at different rates. The
MIRR function takes into account both the cost of the investment (
FinanceRate) and the interest rate received on reinvestment of cash (
ReinvestRate arguments are percentages expressed as decimal values. For example, 12 percent is expressed as 0.12.
MIRR function uses the order of values within the array to interpret the order of payments and receipts. Be sure to enter your payment and receipt values in the correct sequence.