Modified Internal Rate of Return (MIRR)

This component computes the MIRR (Modified Internal Rate of Return) just like in spreadsheet tools like Microsoft Excel and Google Sheet. Adopt this component to analyze the attractiveness of one or more investment projects with periodic transactions/cash flows.

The metric computation is implemented using Group Loop, Math Formula and GroupBy nodes.

The component calculates the modified internal rate of return for a schedule of cash flows taking into account both discount rate and reinvestment rate for future cash flows. Make sure that you have at least one column for the cash flows (for each portfolio/project the first transaction needs to be negative), one column containing the Reinvestment rate (should be the same for each investment group), one column for the Finance rate (should be the same for each investment group) and one column for the project/portfolio by which you want the transactions to be grouped by.

Microsoft Excel Docs: support.microsoft.com/en-us/office/mirr-function-b020f038-7492-4fb4-93c1-35c345b53524

Google Sheets Docs: support.google.com/docs/answer/3093180

This component, verified by KNIME, was developed by finance analytics experts at Mydral, KNIME Partner of the Year 2022: mydral.com/en/knime-uk

Options

Value of Transactions:

Specify a Double or Integer column which represents a series of cash flows that corresponds to a schedule of payments in dates. Make sure that for each project, there is at least one negative and one positive value.

Portfolio ID to Group By:

Specify a String column which name/ID of the project or portfolio corresponding to each transaction. If you have only one project to analyze, make sure you still provide a single value column with a project name.

Reinvestment Rate:

Specify a Double column (all the rows of the column should contain the same value for the same ID) containing the interest rate you receive on the cash flows as you reinvest them.

Finance Rate:

Specify a Double column (all the rows of the column should contain the same value for the same ID) containing the interest rate you pay on the money used in the cash flows.

Nodes

• Math Formula7 ×
• Column Filter5 ×
• Column Rename4 ×
• Column Selection Configuration4 ×
• Extract Column Header4 ×
• Show all 27 nodes

Extensions

• FeatureKNIME Base nodes
• FeatureKNIME Expressions
• FeatureKNIME Javasnippet
• FeatureKNIME Math Expression (JEP)
• FeatureKNIME Quick Forms

Links

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