The calculation follows a specific three-step sequence that aligns perfectly with the BA II Plus's functionality. It is often efficient to calculate these sequentially, using the "FV" register to accumulate the total future value of all inflows.
Calculate MIRR Future Value Method on BA II Plus
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. This provides a more realistic rate of return compared to the standard IRR, which assumes cash flows are reinvested at the IRR itself.
This step answers the question: "What is the total cost of the project today, accounting for the time value of money?" Step 3: Solving for the MIRR With the future value of inflows (FV) and the present value of outflows (PV) calculated, you can now determine the MIRR. 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.
Calculate MIRR Future Value Method on BA II Plus
Practical Example and Data Entry. 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.
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