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| 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 * * 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/