# irr: Internal Rate of Return In jrvFinance: Basic Finance; NPV/IRR/Annuities/Bond-Pricing; Black Scholes

## Description

Computes IRR (Internal Rate of Return) for cash flows with different cash flow and compounding conventions. Cash flows need not be evenly spaced.

## Usage

 ``` 1 2 3 4 5 6 7 8 9 10 11 12``` ```irr( cf, interval = NULL, cf.freq = 1, comp.freq = 1, cf.t = seq(from = 0, by = 1/cf.freq, along.with = cf), r.guess = NULL, toler = 1e-06, convergence = 1e-08, max.iter = 100, method = c("default", "newton", "bisection") ) ```

## Arguments

 `cf` Vector of cash flows `interval` the interval c(lower, upper) within which to search for the IRR `cf.freq` Frequency of annuity payments: 1 for annual, 2 for semi-annual, 12 for monthly. `comp.freq` Frequency of compounding of interest rates: 1 for annual, 2 for semi-annual, 12 for monthly, Inf for continuous compounding. `cf.t` Optional vector of timing (in years) of cash flows. If omitted regular sequence of years is assumed. `r.guess` the starting value (guess) from which the solver starts searching for the IRR `toler` the argument `toler` for `irr.solve`. The IRR is regarded as correct if abs(NPV) is less than `toler`. Otherwise the `irr` function returns `NA` `convergence` the argument `convergence` for `irr.solve` `max.iter` the argument `max.iter` for `irr.solve` `method` The root finding method to be used. The `default` is to try Newton-Raphson method (`newton.raphson.root`) and if that fails to try bisection (`bisection.root`). The other two choices (`newton` and `bisection` force only one of the methods to be tried.

jrvFinance documentation built on April 18, 2021, 5:06 p.m.