Project cash flows and modified cash flows are presented in an illustrative graphic within Excel for the live or virtual classroom. Further, the graphic computes and displays the relevant modified internal rate of return (MIRR) and modified net present value (MNPV), with associated formulas. The presentation allows for a discussion of the reinvestment assumption attributed to the internal rate of return (IRR) and the net present value (NPV) calculations.
Please note that downloads of this working paper are for private/personal use only. Do not cite without permission.
Arnold, Tom, and Joseph Farizo. “Visual Presentation of MIRR and MNPV Calculations.” University of Richmond, (January, 2021): 1-12.
Click below to download supplemental content.MIRR-PAPER.xlsx (16 kB)
a three-year version of the MIRR-MNPV graphic is presented with the associated Excel programmin