Bookmark and Share

Notice: On March 31, it was announced that Statalist is moving from an email list to a forum. The old list will shut down on April 23, and its replacement, is already up and running.

[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Re: st: Internal Rate of Return Calculation

From   Austin Nichols <>
Subject   Re: st: Internal Rate of Return Calculation
Date   Tue, 14 Jun 2011 11:35:02 -0400

Sounds like

On Tue, Jun 14, 2011 at 2:07 AM, M. S. <> wrote:
> 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:

© Copyright 1996–2015 StataCorp LP   |   Terms of use   |   Privacy   |   Contact us   |   Site index