Section 2: MIRR, Duration, Partitioning, Risk Chart

The down payment or equity needed for this investment is $45,000 (outflow)

N BTCF

1. $10,000 Savings Rate is: 1% and Loan Rate is 7%
2. 5,000
3. -3,200
4. 6,500

Sale 4 $33,000

Calculate the adjustment rate to use for MIRR:

1. Do MIRR for the above example:

2. Partition and do Duration using the MIRR rate for the chart below:

N BTCF Present Value N N*PV

3. Complete the Risk Chart below:

Reference Case Less Risk More Risk

MIRR _______ __________ _________

%CF ________ __________ _________

%Sale ________ __________ _________

Duration_______ __________ _________