Finance.Mirr Method

FinanceMirr Method

Returns the modified internal rate of return for a schedule of periodic cash flows.

Namespace: Imsl.Finance
Assembly: ImslCS (in ImslCS.dll) Version: 6.5.2.0

Syntax

public static double Mirr(
	double[] cashFlow,
	double financeRate,
	double reinvestRate
)

Public Shared Function Mirr ( 
	cashFlow As Double(),
	financeRate As Double,
	reinvestRate As Double
) As Double

public:
static double Mirr(
	array<double>^ cashFlow, 
	double financeRate, 
	double reinvestRate
)

static member Mirr : 
        cashFlow : float[] * 
        financeRate : float * 
        reinvestRate : float -> float

Parameters

cashFlow: Type: SystemDouble
A double array of cash flows.
financeRate: Type: SystemDouble
A double which specifies the interest you pay on the money you borrow.
reinvestRate: Type: SystemDouble
A double which specifies the interest rate you receive on the cash flows.

Return Value

Type: Double
A double which specifies the modified internal rate of return.

Remarks

The modified internal rate of return differs from the ordinary internal rate of return in assuming that the cash flows are reinvested at the cost of capital, not at the internal rate of return. It also eliminates the multiple rates of return problem. It is computed using the following:

${\left\{ {{{ - \left( {\it pnpv} \right)\left( {1 + {\it reinvestRate}} \right)^{\it n\_per} } \over {\left( {\it nnpv} \right)\left( {1 + {\it financeRate}} \right)}}} \right\}^{{1 \over {{\it nper} - 1}}} } - 1$

where ${\it pnpv}$ is calculated from Npv for positive values in values using reinvestRate, and where ${\it nnpv}$ is calculated from Npv for negative values in values using financeRate.

Reference

Finance Class

Imsl.Finance Namespace

Other Resources

Example