numpy.mirr() in Python (original) (raw)

Last Updated : 05 Aug, 2022

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