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From |
"M. S." <shanghaiexpat09@googlemail.com> |

To |
statalist@hsphsun2.harvard.edu |

Subject |
st: Internal Rate of Return Calculation |

Date |
Tue, 14 Jun 2011 08:07:38 +0200 |

Dear Statalisters: I am searching for a more convenient way to calculate internal rates of return. I should mention, that I am not that experienced with Stata at this point. I have a function like this: Net Present Value = Value0+ value1/(1+irr)^1+ value2/ (1+irr)^2 . . . + value6/(1+irr)^5*(irr-growth) – price To find the discount rate irr that makes the function equal to zero I am currently using a forvalues loop which increases or decreases the discount factor given the current value of Net Present Value. This requires me to recalculate the result all the time and to use several if-conditions so that irr is changed by 1% at first and later by 0.1%, 0.01% and so on . . . Is there a more convenient way to find the discount factor? When I searched, I only found a function called “finirr” but I couldn´t find any documentation for it and my data do not describe as a time series. I look forward to any input you could give me on that issue and really appreciate every help! Kind regards, Martin * * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/

**Follow-Ups**:**Re: st: Internal Rate of Return Calculation***From:*Argyn Kuketayev <akuketayev@mail.primaticsfinancial.com>

**Re: st: Internal Rate of Return Calculation***From:*Austin Nichols <austinnichols@gmail.com>

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