Visual Presentation of MIRR and MNPV Calculations

12 Pages Posted: 18 Feb 2021

See all articles by Tom Arnold

Tom Arnold

University of Richmond - E. Claiborne Robins School of Business

Joseph Farizo

University of Richmond - E. Claiborne Robins School of Business

Date Written: January 8, 2021

Abstract

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.

Keywords: MIRR, MNPV, Pedagogy

JEL Classification: G00, G31, G39

Suggested Citation

Arnold, Thomas M. and Farizo, Joseph, Visual Presentation of MIRR and MNPV Calculations (January 8, 2021). Available at SSRN: https://ssrn.com/abstract=3762723 or http://dx.doi.org/10.2139/ssrn.3762723

Thomas M. Arnold (Contact Author)

University of Richmond - E. Claiborne Robins School of Business ( email )

102 UR Drive
University of Richmond, VA 23173
United States
804-287-6399 (Phone)
804-289-8878 (Fax)

Joseph Farizo

University of Richmond - E. Claiborne Robins School of Business ( email )

Richmond, VA 23173
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
18
Abstract Views
87
PlumX Metrics