Hello:
Does anyone knw how to solve MIRR using a BA II Plus? Thank you.
In my view, this calculation is not likely to appear directly in exam in a full version, as it needs to provide reinvestment rate and cost of capital.
If so, it will be more like just plug and chug for the formula.
(FV of CF using reinvestment rate / PV of -CF using cost of capital) ^1/T - 1
Here it is in two steps for the BAII+
E,g, reinvestment rate and cost of capital is 12%
Year 0 1 2 3 CF -$2.5 $0.5 $1.1 $1.4
Step 1, Calculate the FV CF at each time period. Once you enter in I/Y and PMT, you only need to change the N and PV values.
N 2 1 0 I/Y 12 12 12 PMT 0 0 0 PV -$0.50 -$1.10 -$1.40 FV? = $0.6272 $1.232 $1.40
Step 2
Sum FV $0.6272+$1.232+$1.40 = $3.2592 PV -$2.5 PMT 0 N 3 I/Y? = 9.24% So MIRR = 9.24%