Cash Flow (IRR, MIRR, NPV)

[salvomic]

(05-28-2015 12:27 AM)Tim Wessman Wrote:  Don't forget to add the "pragma" line to make sure it will work properly on systems with other comma/hex settings!

you're are right, Tim.
I should see how it's its syntax for this program, then add it.
Is only this ok?

Code:

#pragma mode(separator(.,;) integer(h32))

(05-28-2015 03:48 AM)gregnbrown Wrote:  Works great, no errors. Thanks. Last question, I now see it in vars-->user. What is the exact syntax I would use to calculate the IRR ?

great!
Var -> user -> cash flow: click on CF_IRR to get IRR, on CF_MIRR to get modified IRR, CF_NPV to get Net Present Value of the last calculations (after using the program), no parenthesis, no other...

To calculate IRR you need to have a list or a matrix (inside the program) with the cash flows (CF0, CFj...) and an interest rate, the first is generally negative (expense), the others flows are or negative or positive; IRR will have more values for more changement of sign or only one, not always it's possible to calculate it and in some cases financially is more suitable to calculate MIRR (see here, i.e.).
IRR is obtained setting NPV to 0 in the equation...

An example to test: -80000, -500, 4500 (3 times), 130000
You buy a mansion 80000$, the second year pay 500 (tax...), 3rd-5th year to get 4500 from rent, then sell to 130000$ at 13% of rate of yield preview.
You should get NPV +212.18.
Then try IRR with the same cashflow, the program gives you 13.72% (about the previewed one)


Salvo