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After-tax cash flows, the return on after-tax cash flows and
after-tax sales proceeds are accumulated for each year 1 through 10
to calculate the investor's after-tax future wealth / net worth.
After-tax cash flows are equal to the total of after-tax reserve
funds and after-tax cash for reinvestment. The On Target
software calculates a modified internal rate of return using the
initial investment amount and the after-tax future wealth amount.
Put simply, the modified internal rate of return is the average
return the investor would need to make on the initial investment
amount to accumulate the after-tax future wealth amount.
Note:
The Future Wealth graphic can be displayed and printed in 2D Line,
bar and step format and in 3D bar and step format.
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