Calculate IRR| Internal rate of return

=tadIRR ( guess_rate, cash flows, compounding, period, concentration )

Data input


%











Data output

f(r) = -100(1+r)^0 +50(1+r)^-1 +40(1+r)^-2 +30(1+r)^-3 +10(1+r)^-4
f'(r) = -50(1+r)^-2 -80(1+r)^-3 -90(1+r)^-4 -40(1+r)^-5

r0 = 0.1
f(r0) = 7.882
f'(r0) = -187.7356
r1 = 0.1 - 7.882/-187.7356 = 0.1419844551017
Error Bound = |0.1419844551017 - 0.1| = 0.041984 > 0.000001

r1 = 0.1419844551017
f(r1) = 0.4788
f'(r1) = -165.5692
r2 = 0.1419844551017 - 0.4788/-165.5692 = 0.14487617020274
Error Bound = |0.14487617020274 - 0.1419844551017| = 0.002892 > 0.000001

r2 = 0.14487617020274
f(r2) = 0.002
f'(r2) = -164.1783
r3 = 0.14487617020274 - 0.002/-164.1783 = 0.14488844256652
Error Bound = |0.14488844256652 - 0.14487617020274| = 1.2E-5 > 0.000001

r3 = 0.14488844256652
f(r3) = 0
f'(r3) = -164.1725
r4 = 0.14488844256652 - 0/-164.1725 = 0.14488844278586
Error Bound = |0.14488844278586 - 0.14488844256652| = 0.00000000021934 ≤ 0.000001
IRR = r4 = 0.14488844278586 or 14.49%