Hi all, i was trying to check the sensitivity of the MIRR function to changes
in the frate. The equation uses input like this: =MIRR(values,frate,rrate)
where the values are the cash flows, the frate is the finance rate for the
capital, and the rrate is the re-investment rate of the return cash flows.
I changed the frate (also called cost of capital) from one percent (.01) to
a rediculous 90% (.9) and the answer (MIRR) didn't change.
Does anybody know enough about the formula or function that could explain
this?
In the help file, you can see where frate is used, but changing it, or even
leaving it out, doesn't change the answer.
So the question is...is there a bug in the implementation of the MIRR
formula, or is it supposed to do that, and why?
thanks!
SongBear