CFLib.org – calcIRR

calcIRR(arrCashFlow)

Last updated October 10, 2011

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FALCONSEYE
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Version: 1 | Requires: ColdFusion MX | Library: FinancialLib

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Description:
Calculates Internal Rate of Return (IRR) similar to excel IRR function.

Return Values:
Returns a numeric value.

Example:

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<cfscript>
	cFlow = arrayNew(1);
	cFlow[1] = -4000;
	cFlow[2] = 1200;
	cFlow[3] = 1410;
	cFlow[4] = 1875;
	cFlow[5] = 1050;
	
	myIRR = calcIRR(cFlow);
 </cfscript>	

 <cfdump var="#cFlow#">
 <cfoutput>irr = #myIRR#</cfoutput>

<cfscript>
    cFlow = arrayNew(1);
    cFlow[1] = -4000;
    cFlow[2] = 1200;
    cFlow[3] = 1410;
    cFlow[4] = 1875;
    cFlow[5] = 1050;

    myIRR = calcIRR(cFlow);
</cfscript>

<cfdump var="#cFlow#">
<cfoutput>irr = #myIRR#</cfoutput>

Parameters:

Name	Description	Required
arrCashFlow	Array of cashflow.	Yes

Full UDF Source:

	
	
			
			
			
				
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				about
				ColdFISH is developed by Jason Delmore.  Source code and license information available at coldfish.riaforge.org.  Version 3.1.1
				
			<!---
 Calculate IRR.
 
 @param arrCashFlow 	 Array of cashflow. (Required)
 @return Returns a numeric value. 
 @author FALCONSEYE (&#102;&#97;&#108;&#99;&#111;&#110;&#115;&#101;&#121;&#101;&#64;&#108;&#105;&#118;&#101;&#46;&#99;&#111;&#109;) 
 @version 1, October 10, 2011 
--->
<cffunction name="calcIRR" output="false">
	<cfargument name="arrCashFlow" type="Array" required="yes" hint="array of cashflow">
	<cfscript>
		var guess = 0.1;
		var inc   = 0.00001;
		do {
			guess += inc;
			npv = 0; //net present value
			for (var i=1; i<=arrayLen(arguments.arrCashFlow); i++)	{
				npv += arguments.arrCashFlow[i] / ((1 + guess) ^ i);	
			}
			
		} while ( npv > 0 );
		
		guess =  guess * 100;
	</cfscript>
	<cfreturn guess>
</cffunction>
		<!---
 Calculate IRR.
 
 @param arrCashFlow      Array of cashflow. (Required)
 @return Returns a numeric value. 
 @author FALCONSEYE (falconseye@live.com) 
 @version 1, October 10, 2011 
--->
<cffunction name="calcIRR" output="false">
    <cfargument name="arrCashFlow" type="Array" required="yes" hint="array of cashflow">
    <cfscript>
        var guess = 0.1;
        var inc   = 0.00001;
        do {
            guess += inc;
            npv = 0; //net present value
            for (var i=1; i<=arrayLen(arguments.arrCashFlow); i++)    {
                npv += arguments.arrCashFlow[i] / ((1 + guess) ^ i);    
            }
            
        } while ( npv > 0 );
        
        guess =  guess * 100;
    </cfscript>
    <cfreturn guess>
</cffunction>