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

Input ports

1. Type: Table
   Investments Data
   A KNIME Table where each row represents a financial transaction with the following columns: A column of type String is necessary to identify the financial project/portfolio. A column of type Double or Integer is necessary to identify the value of the financial transactions. A single value column of type Double that represents the Reinvestment rate. A single value column of type Double that represents the Finance rate.

Output ports

1. Type: Table
   MIRR
   A table is returned with a column for the name of the project/portfolio and a column for the MIRR value of each project.