This step effectively answers the question: "What is the total value of all cash inflows at the end of the project if they are invested at the cost of capital?" Handling Multiple Cash Flows If your project has multiple positive cash flows at different points in time, you must calculate the future value of each one individually. Practical Example and Data Entry.
BA II Plus MIRR Practical Example Data: Step-by-Step Calculation Using TVM Functions
On the BA II Plus, you input these cash flows as negative numbers and solve for the present value. To calculate the Modified Internal Rate of Return (MIRR) on a BA II Plus, you first need to understand that this financial calculator does not have a dedicated MIRR key.
You will use the BA II Plus TVM solver to input each cash flow's value and its respective number of periods, calculating the future value at the specified reinvestment rate. On the BA II Plus, you input the FV as a positive number and PV as a negative number into the TVM solver, set N to the project duration, and then press the "CPT" and "I/Y" keys to solve for the interest rate, which is your MIRR.
BA II Plus MIRR Practical Example Data Handling Multiple Cash Flows
Step 2: Calculating the Present Value of Outflows Next, you determine the present value of all negative cash flows (outflows). Unlike higher-end models, the BA II Plus requires you to perform the calculation using the built-in time value of money (TVM) functions and manual steps.
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