The calculation follows a specific three-step sequence that aligns perfectly with the BA II Plus's functionality. 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.
Using TVM Solver to Calculate MIRR on 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.
The process involves determining the future value of positive cash flows and the present value of negative cash flows, then using those results to solve for the MIRR. It is often efficient to calculate these sequentially, using the "FV" register to accumulate the total future value of all inflows.
Using TVM Solver BA II Plus to Compute MIRR
Practical Example and Data Entry. For example, if you have a $1,000 inflow in year 1 and a $2,000 inflow in year 2, you would calculate the future value of the $1,000 for two years and add it to the $2,000.
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