Modified Internal Rate Of Return; Advance Payments; Interest Rate Conversions; Finite Compounding - HP 12C Platinum User Manual

DPN RBV
= ⋅
j j 1
−

Modified Internal Rate of Return

n = number of compounding periods.
NFV = Net future value of the positive cash flows.
P
NPV = Net present value of the negative cash flows.
N
⎡
⎛
NFV
⎢
⎜
MIRR 100
=
⎢
⎜
−
⎝
⎢
⎣

Advance Payments

A = number of payments made in advance.
PV FV
−
PMT =
⎡
1 1 (
− +
⎢
i
⎢
⎣

Interest Rate Conversions

C = number of compounding periods per year.
EFF = the effective annual interest rate as a decimal.
NOM = the nominal annual interest rate as a decimal.

Finite Compounding

NOM
⎛
EFF 1
= +
⎜
C
⎝

Continuous Compounding

NOM
EFF ( e ) 1
= −
FACT
for j ≠ 1
100 L
1 ⎤
⎞
n ⎥
P ⎟
1
−
⎥
⎟
NPV
⎠
N ⎥
⎦
n
−
1 ( i )
+
− ( n − A ) ⎤
i )
A
+
⎥
⎥
⎦
C
⎞
1
−
⎟
⎠
Appendix E: Formulas Used 261