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14: Additional Examples 209
File name : 17BII-Plus-Manual-E-PRINT-030709 Print data : 2003/7/11
Keys: Display: Description:
"
]
" Displays TVM menu.
.
1
Y
Z
e
"
# 5?@2 JH=;< 0EAH"
Sets 1 payment per year
and Begin mode.
35
T
<8%.&((" Stores years until
retirement.
8.175
-
28
%
U
*&#*/$&$,"
;6@28.&*,"
Calculates and stores
interest rate diminished by
tax rate.
0
V
5O8(&(("
Stores no present value.
3000
&
W
50:8/%K(((&(("
Stores annual payment.
X
GO8%+.K.(.&'#"
Calculates future value.
8
U
0
W
V
"
"
5O8/$%K%'*&##"
Calculates present-value
purchasing power of the
above FV at 8%
inflation.
Modified Internal Rate of Return
When there is more than one sign change (positive to negative or
negative to positive) in a series of cash flows, there is a potential for
more than one IRR%. For example, the cash-flow sequence in the
following example has three sign changes and hence up to three
potential internal rates of return. (This particular example has three
positive real answers: 1.86, 14.35, and 29.02% monthly.)
The Modified Internal Rate of Return (MIRR) procedure is an alternative
that can be used when your cash-flow situation has multiple sign
changes. The procedure eliminates the sign change problem by utilizing
reinvestment and borrowing rates that you specify. Negative cash flows
are discounted at a safe rate that reflects the return on an investment in
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