qfinbox.tvm.cashflow.internal_rate_of_return

qfinbox.tvm.cashflow.internal_rate_of_return(cash_flows: List[float] | ndarray, initial_guess: float = 0.1) → float[source]

Calculate internal rate of return for cash flows.

Parameters:

cash_flows (array-like) – Series of cash flows, with initial investment as negative value.
initial_guess (float, default 0.1) – Initial guess for IRR calculation.

Returns:

Internal rate of return (as decimal).

Return type:

float

Examples

>>> cash_flows = [-100000, 30000, 40000, 50000]
>>> internal_rate_of_return(cash_flows)
0.1627