NumPy : Beginner's Guide - Third Edition

Time for action – determining the internal rate of return

Let's reuse the cash flow series from the Time for action – calculating the net present value section. Call the irr() function with the cash flow series from the Time for action section:

print("Internal rate of return", np.irr([-100, 38, 48, 90, 17, 36]))

The internal rate of return:

Internal rate of return 0.373420226888

What just happened?

We calculated the internal rate of return from the cash flow series of the Time for action – calculating the net present value section. The value was given by the NumPy irr() function.