The modified internal rate of return assumes that positive cash flows are reinvested at the cost of capital and initial outlays are financed at the firm's ... the formula for MIRR is expressed as: ...

Excel and Google Sheets have three functions to calculate the internal rate of return: IRR, XIRR, and MIRR. Learn how these functions can calculate investment returns.

To use this function, you must supply both the cash flow amounts as well as the specific dates in which those cash flows are paid. In the example pictured below left, the XIRR formula would be ...

Using MIRR (finance rate 10%, reinvestment rate 10%), we would end up with 10,36% (very similar to your RIC). On the other hand, if you used simple IRR it would be 4,61%.

MIRR formula. The MIRR formula is complex and few traders calculate it without the use of computer software. To calculate MIRR manually, you will need to know the future value of a company’s positive ...