LAE

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Originally posted by: dialpemo

Hi I have been trying to calculate the internal rate of return but I had to create two nodes and I would like to know if is possible to reduce it to one. I try to reduced to introduce a check inside the first node but it didn't work.


Note: actual-simple-IRR.brgactual-simple-IRR.brg

IRR = is the interest rate where

NPV - (sum(discounted cash flows)) = 0

I have also attached my graph

Thank you for your help

Alejandro

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Originally posted by: ltolleson

Alejandro,

I believe that the nature of this problem and the way the LAE processes data that this will require a multi-step (multi-node) process. The solution that you have given seems to work, but there are a couple of things you can do.

* You could put the code in the first Aggregate in a Filter and it works just the same. The filter might perform a little better.
* If you only want to see 1 node, then you can create a composite of the 2 nodes and parameterize anything in those 2 nodes that might change.
* You could also use the NPV that you get from the NPV node and pass that into your IRR nodes so that you do not have to hard code that value. You would need to use a lookup node to add the NPV to your data stream.
* You could also write the node in Java, which could be done in 1 node.

I know this is not the solution you asked for, but using the standard LAE nodes it will require a multi-node solution.

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Originally posted by: dialpemo

Larry,

Thank you for your help, I will follow your recommendations.

Alejandro