MIRR calculation

I don't use a formula and I don't think they help understanding. Instead, discount all cash outflows back the time 0; project all cash inflows through to the end of the project. That gives one outflow, one inflow that can give the IRR. Year 0 1 2 3 4 Cash flow ($) (5,000) 2,000 (1,000) 3,500 3,800 The cost of capital is 10%. x1.1^3 x x 1.1^1 Year 4 values 2,662 + 3,850 + 3,800 = 10,312 Year 0 values 5,000 1000/1.1^2 = 5,826 At IRR: 5,826 = 10,312 x 4 yr D/c factor 4 yr d/c factor = 0.5649 = 1/(1 + r)4 (1 + r)4 = 1.77 ; 1 + r = 1.77^ ¼ = 1.15; so 15%

That's just normal discounting At IRR the PV of inflows = the PV of outflows. See the last 4 lines of the calculation above.

You treat the MIRR as the IRR. There is a formula, but it would not necessarily be provided and it is very complicated. Don't get fixated on MIRR.

one of the ways of calculating MIRR is using the termional values of positive cashflows aginst the negative cashflows of negative flows .....same as what the tutor has said reinvesting the profits and getting the pv of negative flows then all that divided by the investment period minus 1......