MIRR in WPS Spreadsheet: Financing and Reinvestment Rates

=MIRR(values, finance_rate, reinvest_rate)

Values are ordered numeric cash flows at equal intervals, with outgoing amounts negative and incoming amounts positive. All three arguments are required in the documented syntax. For n cash-flow observations starting at time zero, there are n − 1 intervals.

The WPS lesson requires at least one positive and one negative flow; it documents #DIV/0! otherwise. It says blanks, text and logical values are ignored, but numeric zeros are included. Use explicit zeros to preserve periods without cash movement.

Enter −100, 50 and 60 in A2:A4, financing rate 0.1 in B2 and reinvestment rate 0.2 in B3.

1. Enter =MIRR(A2:A4,B2,B3).
2. The negative-flow present-value magnitude is 100 because the only outflow is at time zero.
3. The terminal value of positive flows is 50*1.2 + 60 = 120: the first receipt is reinvested for one interval.
4. There are two intervals, so the independent result is sqrt(120/100) − 1, approximately 0.0954451150103322, or 9.5445% per interval.

Do not divide by three merely because the range contains three values. The exponent depends on elapsed intervals, not the number of cells alone.

Changing the financing rate has no effect in the first two rows because there are no later outflows to discount. That is a property of this particular timeline, not a general statement that financing cost is irrelevant.

For −100, −110 and 242, discount the second outflow one interval at 10%. Its present magnitude is 110/1.1 = 100, so total negative-flow present magnitude is 200. The only positive receipt occurs at the terminal date and is already worth 242 there. The two-interval growth rate is sqrt(242/200) − 1 = 0.1.

The reinvestment rate does not affect this case because no positive receipt occurs before the final date. Moving that receipt earlier would change its reinvestment horizon. Keep cash-flow timing and the two assumptions visible beside any result.

The WPS formula image expresses the result through discounted negative flows and accumulated positive flows, raised to the power 1/(n − 1), less one. In time-zero notation, compute the magnitude of negative-flow present value and the terminal value of positive flows, then take their ratio to that power.

The vendor demonstration uses −500000 followed by 120000, 100000, 80000, 120000 and 120000, with financing 8.7% and reinvestment 10.3%; it displays a rounded 6%. That display is a historical illustration, not a precise benchmark or a promise that either rate can be earned.

A single modified return does not describe the scale, risk or liquidity of the cash flows. Compare cash-flow magnitudes and assumptions separately. NPV addresses value at a chosen discount rate, whereas MIRR builds financing and reinvestment assumptions into a rate summary. Use SUM to inspect totals, remembering that an undiscounted total ignores timing.

The original examples use finite positive rates and complete numeric timelines. Negative rate boundaries, text coercion and other invalid-input errors remain outside these controls. Do not infer them from another spreadsheet implementation.

The official WPS lesson is dated 2019-06-10 and explicitly labels WPS Office for Windows Personal. Its numeric build is unspecified. This documents the function by that date; it does not establish first introduction, the last functioning build, other-platform parity or a retirement/deprecation history.

The complete lesson and its formula images and walkthrough were inspected on October 18, 2026. Original examples are documentation-derived independent calculations, not WPS or other spreadsheet-engine executions. These fictional financial calculations explain a function, not the suitability of a financial product.