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numpy.mirr() in Python

Last Updated : 05 Aug, 2022
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numpy.mirr(values, finance_rate, reinvest_rate) : This financial function helps user to compute modified IRR Value i.e. Modified Internal Rate of Return ie. “average” periodically compounded rate of return
IRR equals to – 

Parameters : 
values : [array-like] Input cash flows per time period. net “deposits” are negative and net “withdrawals” are positive 
finance_rate : Interest paid on cash amounts. 
reinvest_rate : Interest received on cash amounts.
Return : Modified Internal Rate of Return for periodic input values ie. considering interest values.

Code: 

Python3




# Python program explaining
# mirr() function
 
import numpy as np
'''
Question :
 
    Investment = 500
    Withdrawals at regular interval : 50, 31, 3, 11
'''
 
Solution = np.mirr([-500, 50, 31, 3, 11], .34, .21)
 
print("Solution - Modified Internal Rate of Return : ", Solution)


Output: 

Solution - Modified Internal Rate of Return :  -0.26165615714437973

 


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