Irr(Values: Array; [Guess: Double =0.1]): Double;
Parameters | Description | Constraints |
Values | An array, containing the numbers, for which internal rate of return has to be calculated. | It is required to use an array of the Double. |
Guess | A value, which is supposed to be closed to the result of Irr. | By default it is equal to 0.1 (10 percent). |
The Irr method returns internal rate of return for the set of cash flows, represented by their numeric values.
The values must contain at least one positive and one negative value. These cash flows do not have to be equal, as in the case with annuity. But they must be regular, for example, monthly or annual. Internal rate of return is an interest rate, used for an investment, consisting of payments (negative values) and yields (positive values), which are done sequentially in equal periods.
To execute the example, add a link to the MathFin system assembly.
Sub UserProc;
Var
r: Double;
Arr: Array[3] Of Double;
Begin
Arr[0] := -1;
Arr[1] := 1.5;
Arr[2] := 2.5;
r := Finance.Irr(Arr, 0);
Debug.WriteLine(r);
End Sub UserProc;
After executing the example the console window displays the internal rate of return equal to 1.50000000037253.
See also: