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a liquid account. The figure generally used is a short-term security (T-bill)
or bank passbook rate. Positive cash flows are reinvested at a
reinvestment rate that reflects the return on an investment of comparable
risk. An average return rate on recent market investments might be used.
1. In the CFLO menu, calculate the present value of the negative cash
flows ( NPV ) at the safe rate and store the result in register 0. Enter
zero for any cash flow that is positive.
2. Calculate the future value of the positive cash flows ( NFV ) at the
reinvestment rate and store the result in register 1. Enter zero for any
cash flow that is negative.
3. In the TVM menu, store the total number of periods in N , the NPV
result in PV , and the NFV result in FV .
4. Press
to calculate the periodic interest rate. This is the
modified internal rate of return, MIRR.
Example: Modified IRR. An investor has an investment opportunity with
the following cash flows:
Group
(FLOW no.)
0
1
2
3
4
Calculate the MIRR using a safe rate of 8% and a reinvestment (risk) rate
of 13%.
Keys:
@c
210 14: Additional Examples
File name : English-M02-1-040308(Print).doc
No. of Months
(#TIMES)
1
5
5
9
1
Display:
Print data : 2004/3/9
Cash Flow, $
－180,000
100,000
－100,000
0
200,000
Description:
Displays current cash-flow
list.
Clears current list or gets a
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