import numpy as np
def calculate_irr(cashflows):
"""
Function to calculate Internal Rate of Return (IRR)
:param cashflows: List of cashflows including initial investment (negative) and subsequent inflows.
:return: IRR as a percentage
"""
irr = np.irr(cashflows)
if irr is not None:
return round(irr * 100, 2) # Convert to percentage
else:
return "IRR Calculation Failed"
def calculate_cagr(initial_value, final_value, years):
"""
Function to calculate Compound Annual Growth Rate (CAGR)
:param initial_value: Initial investment value
:param final_value: Final value after the investment period
:param years: Number of years
:return: CAGR as a percentage
"""
if initial_value <= 0 or years <= 0:
return "Invalid Input"
cagr = ((final_value / initial_value) ** (1 / years)) - 1
return round(cagr * 100, 2) # Convert to percentage
# Example Usage:
cashflows = [-10000, 2000, 3000, 4000, 5000, 6000] # Example cashflows
initial_value = 10000
final_value = 25000
years = 5
irr_result = calculate_irr(cashflows)
cagr_result = calculate_cagr(initial_value, final_value, years)
print(f"IRR: {irr_result}%")
print(f"CAGR: {cagr_result}%")
IRR CALCULATOR
Reviewed by Dr. Chandan
on
February 18, 2025
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