INT_RATE_RETURN Function
Evaluates the internal rate of return for a schedule of cash flows.
Usage
result = INT_RATE_RETURN (values)
Input Parameters
values—One-dimensional array of cash flows which occur at regular intervals, which includes the initial investment.
Returned Value
result—The internal rate of return for a schedule of cash flows. If no result can be computed, NaN is returned.
Input Keywords
Double—If present and nonzero, double precision is used.
Xguess—If present, the value is used as the initial guess at the internal rate of return.
Highest—If present, the value is used as the maximum value of the internal rate of return allowed.
Discussion
Function INT_RATE_RETURN computes the internal rate of return for a schedule of cash flows. The internal rate of return is the interest rate such that a stream of payments has a net present value of zero.
It is found by solving the following with count = N_ELEMENTS (values):
where valuei = the ith cash flow, rate is the internal rate of return.
Example
In this example, INT_RATE_RETURN computes the internal rate of return for nine cash flows, $-800, $800, $800, $600, $600, $800, $800, $700 and $3,000, with an initial investment of $4,500.
values = [ -4500., -800., 800., 800., 600., 600., 800., 800., $
700., 3000. ]
PRINT, INT_RATE_RETURN(values)
; PV-WAVE prints: 0.0720783
