On the BA II Plus, you input these cash flows as negative numbers and solve for the present value. 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.
Press CPT I/Y Keys BA II MIRR
It is often efficient to calculate these sequentially, using the "FV" register to accumulate the total future value of all inflows. 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 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. 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.
Press CPT I/Y Keys BA II 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. These are typically the initial investment or subsequent costs.
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