Hello,
I have an exercise in which I need to calculate IRR & MIRR.
While calculating IRR I used 10% & 15% to end up with IRR of, let's say 13%.
Which rate I should use to calculate MIRR with help of standard MIRR equation:
[PVR/PVI]*1/n*(1+r)-1
...and if it is IRR, I assume that I must calculate PV of inflows/outflows with that rate as well...correct?
Thank you in advance for your help!
Regards,
PJ
MIRR discount rate
For the MIRR the rate you use in the formula is the cost of capital (not the IRR).
