numpy.irr(values) : This financial function helps user to compute IRR Value i.e. Internal Rate of Return ie. “average” periodically compounded rate of return.
Parameters :
values : [array-like] Input cash flows per time period. net “deposits” are negative and net “withdrawals” are positive
Return : Internal Rate of Return for periodic input values.
Code:
Python3
# Python program explaining # irr() function import numpy as np ''' Question : Investment = 500 Withdrawals at regular interval : 50, 31, 3, 11 ''' Solution = np.irr([ - 500 , 50 , 31 , 3 , 11 ]) print ( "Solution - Internal Rate of Return : " , Solution) |
Output:
Solution - Internal Rate of Return : -0.5296447721512683