It is often efficient to calculate these sequentially, using the "FV" register to accumulate the total future value of all inflows. Step 1: Calculating the Future Value of Inflows The first step requires you to take all positive cash flows (inflows) and compound them forward to the end of the project's life.
Step-by-Step MIRR Calculation Using the BA II Plus TVM Solver
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. The calculation follows a specific three-step sequence that aligns perfectly with the BA II Plus's functionality.
These are typically the initial investment or subsequent costs. 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.
Step-by-Step MIRR Calculation on Your BA II Plus
On the BA II Plus, you input these cash flows as negative numbers and solve for the present value. 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.
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