Just wanted to say THANK YOU. I've spent over an hour on MIRR from my professor's notes, my book, my online Aplia software, wiki, google, etc... and nothing could explain it this well. Thank you again!
My instructor somehow makes MIRR a 12 step process and calculates the FV back to PV and then calculates the terminal value and solves from there... This is so much more simple. Thank you!
This was definitely a good video breaking down MIRR step by step. Just so people know there are calculators that can calculate MIRR. I use the BAII Plus but it has to be the Professional version to work and you need to put the discount rate in the TVM section (I) also. The HP calculator may be able to do it also. I am a Senior majoring in Finance/Economics and being able to save time by using a calculator is good during exam time.
I like how he went step by step at the end, but there are 3 different methods to calculate MIRR and he did not explain which method he was using, nor why he was using it. It appears that he is using the combination method.
That's a great video, thank you ! I was just wondering : why didn't we keep the negative sign of the PV of outflows in the last step? Thank you for your help !
Modified IRR (MIRR) is a Spurious criterion and should not be used in cost-benefit analysis and investment analysis ssrn.com/abstract=2942456 Please also read this paper that MIRR is a spurious criterion. Dr Kannan Arjunan
Just wanted to say THANK YOU. I've spent over an hour on MIRR from my professor's notes, my book, my online Aplia software, wiki, google, etc... and nothing could explain it this well. Thank you again!
Even one of the best textbooks could not explain this they way you did. Thank You so much.
This is the one of the finest videos I have seen that explains the calculation so well..thank you for this explanation and making it so simple....
My instructor somehow makes MIRR a 12 step process and calculates the FV back to PV and then calculates the terminal value and solves from there... This is so much more simple. Thank you!
Best explanation I've encountered on this concept. Thanks for posting!
Beautiful explanation.. Made my life 20times easy ... thank you soo much..
*Great video im still going top have to watch it a few times but i better understand it*
The k is required return. If the IRR > required return, it is good and we can accept such a project and vice-versa.
explained brilliantly, thanks
When solving PV of cash flow Why did it increase from 5000 to 5500 instead of 4545.45?
THANK YOU SOI MUCH YOU SAVED ME I HAVE FINAL EXAM TOMORROW YOUR GOOD !
Kya baat ha. Maza aagaya. Very simple understanding.
Thank you so much for this! Great job.
Simply explained. Thank you so much
Glad it was helpful!
Thanks Faisal. I am glad I could be of help.
This was definitely a good video breaking down MIRR step by step. Just so people know there are calculators that can calculate MIRR. I use the BAII Plus but it has to be the Professional version to work and you need to put the discount rate in the TVM section (I) also. The HP calculator may be able to do it also. I am a Senior majoring in Finance/Economics and being able to save time by using a calculator is good during exam time.
Very helpful for my capital budgeting test tomorrow!
this is so much better,,, thank you
very effective and easy to understand thanks alot
wow!!!! It's really helpful.
Love it.
Why do we need to find the FV of inflows? Why don't we just find the PV of inflows? That is, why do we find the FV, then the PV of the FV? Thanks!
Best explanation ever
Very helpful! Thanks!
Genius. Thank you!
so cool, thanks sir!
Excellent explanation.
Thanks very much Sir！it helps a lot！！！
much cooler than reading wikipedia text , thx maaan)
thanks for simplifying it!
I like how he went step by step at the end, but there are 3 different methods to calculate MIRR and he did not explain which method he was using, nor why he was using it. It appears that he is using the combination method.
when we are equating both the PV and PV of FV, why isnt the negative sign of 4932.23 considered?
great video, thanks!- Vladimir
If there is more than one cash inflow, are we simply going to add FV of cash inflows to each other?
That's a great video, thank you ! I was just wondering : why didn't we keep the negative sign of the PV of outflows in the last step? Thank you for your help !
shizuna222 because since it's a cash outflow there's no need for the negative sign
Great
Thank you so much . clear , direct and simple :)
Could you please make such easy and direct example for XIRR ?
Sir, why we do Pv of fv of inflows for 2 years instead of 1 year ??
Because fv of 5000 is 5500 for 1 year
Sir terminal year is year 1 or year two???? If its year 1 then mirr will be 11.5%..........5500/1.115power1
Great, Thank you.
Is it same one which is applicable in acca?
Brilliant
how to do it on the calculator
why did you only include one cash flow for the FV and not the other? That is, you used FV=5000*1.10
One has to calculate FV for cash inflows. In this question, there is only one cash inflow.
why is it raised to the power of 1/2??
great!
i dont get 0.005 i got .55
Modified IRR (MIRR) is a Spurious criterion and should not be used in cost-benefit analysis and investment analysis ssrn.com/abstract=2942456
Please also read this paper that MIRR is a spurious criterion. Dr Kannan Arjunan
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Please solve the problem
Lol i misspelled mire
the result of step 1 had a minus(-), but while you were equating within the equation u didnt take that minus...is it alright?
Shabab Mahmood simple, the initial equation is: - 4932,23 + 5500 / (1 + K)^2 = 0
When you move PV of outflows to the other side it becomes positive ;)
Thanks Sir,
it does, thanks much :)
thanks :D