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Re: st: Internal Rate of Return Calculation


From   Argyn Kuketayev <akuketayev@mail.primaticsfinancial.com>
To   statalist@hsphsun2.harvard.edu
Subject   Re: st: Internal Rate of Return Calculation
Date   Tue, 14 Jun 2011 18:51:48 -0400

another approach is to use optimization routines in Stata. you can
define a function of NPV(IRR)^2, then find it's minimum. or maybe
stata has rott finding algorithms, then it's direct NPV(IRR)==0
finding.

NPV function is very simple, of course, it's a dot product of two
vectors: (1+IRR)^k and CF

On Tue, Jun 14, 2011 at 6:46 PM, Argyn Kuketayev
<akuketayev@mail.primaticsfinancial.com> wrote:
> if performance is not a consideration, then you can get IRR using
> eigenvalue routines, like SVD, which should be available in matrix
> library
>
> On Tue, Jun 14, 2011 at 2:07 AM, M. S. <shanghaiexpat09@googlemail.com> 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
>
> --
> Argyn Kuketayev
>



-- 
Argyn Kuketayev

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