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.