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[REBOL] Re: financial functions

From: gchiu:compkarori at: 18-Apr-2002 12:31

On Wed, 17 Apr 2002 13:27:59 -0400 "[chalz--earthlink--net]" <[chalz--earthlink--net]> wrote:
> Heh! Perhaps if I had some idea as to what internal > rate of return meant, I could give you a hand ;)
Hi, I found this definition "The internal rate of return is the interest rate that makes the present value of the investment's income stream -- its costs and payoffs -- add up to 0. " from which is an economics lecture about the value.
> Perhaps the difference between your function and > Excel's function is a matter of rounding? Since I see no > decimals in your comparative values, and they are so > close, it almost seems to suggest that you rounded up, > where Excel rounded down No?
I think the maths is okay, but I'm sure the way I'm doing it is not at all economical. As far as I can tell, you have to approximate to solve for the irr, and keep approximating till you reach 0. -- Graham Chiu