exonio 0.4.1 → 0.5.0

checksums.yaml

@@ -1,7 +1,7 @@
 ---
 SHA1:
-  metadata.gz: d61396bb031ad61fccf7f19cc5cc1ef243bb78da
-  data.tar.gz: 6de79892afc7edf4e19da4767e4ba5dacc2886aa
+  metadata.gz: ca4e5b35139265ba594d5146efee24fd9511a8b4
+  data.tar.gz: 31addf7c1d0e5d28a49b27d8537a713e2c12651d
 SHA512:
-  metadata.gz: 37e0ed4a079fe9a7089c70b31cedd3c8e7dbbbcd044945c7b70ba06eba8145e0a90f61939cb4b2292907ede374a3a6c6bb1e43a79fa8c049f9ebe059d88384eb
-  data.tar.gz: b54e1f1ef81daff292ddfcca5d6fbdb35adae1fc3b2d7e16deca55b2122dc8535a401e313e49ebd978644c987f26294b230ab587fab7b0b90866023d4b252e6e
+  metadata.gz: c082906456fc5cc853a11f6fc70f45886920053d662322a4b686122b849152875b19d011cbd4078229d17de419a7f939282b92270c9ed6834eefe7bf72b64b62
+  data.tar.gz: d98d28a9b7705a7dfe6343d9fb3bc26f6a689aed5e39272e24879349b75278ddaf25b616f0e75a7f426d612cdbe969d4f7f5edd6fded4b09b4740727b2524ea3

data/CHANGELOG.md

@@ -1,5 +1,13 @@
 # CHANGELOG
 
+## 0.5.0
+
+* Implements `irr` and `npv` method
+
+## 0.4.1
+
+* Fix infinite loop with big scale on `rate` method
+
 ## 0.4.0
 
 * Implements `rate` method

data/Gemfile.lock

@@ -1,7 +1,7 @@
 PATH
   remote: .
   specs:
-    exonio (0.4.1)
+    exonio (0.5.0)
 
 GEM
   remote: https://rubygems.org/

data/README.md

@@ -43,6 +43,19 @@ By convention, the negative sign represents cash flow out (i.e. money not
 available today).  Thus, saving $100 a month at 5% annual interest leads
 to $15,692.93 available to spend in 10 years.
 
+### IRR
+
+Suppose one invests 100 units and then makes the following withdrawals at regular (fixed)
+intervals: 39, 59, 55, 20. Assuming the ending value is 0, one's 100 unit investment
+yields 173 units; however, due to the combination of compounding and the periodic
+withdrawals, the "average" rate of return is neither simply 0.73/4 nor (1.73)^0.25-1.
+
+```ruby
+Exonio.irr([-100, 39, 59, 55, 20]) # ==> 0.28095
+```
+
+So, the internal rate of return is 28.09%
+
 ### IPMT
 
 What is the interest part of a payment in the 8th period (i.e., 8th month),
@@ -65,6 +78,14 @@ Exonio.nper(0.07 / 12, -150, 8000) # ==> 64.07334877066185
 
 So, over 64 months would be required to pay off the loan.
 
+### NPV
+
+Calculates the Net Present Value of an investment
+
+```ruby
+Exonio.npv(0.281, [-100, 39, 59, 55, 29]) # ==> -0.00661872883563408
+```
+
 ### PMT
 
 What is the monthly payment needed to pay off a $200,000 loan in 15
@@ -113,9 +134,7 @@ There's a lot of formulas to be implemented, including:
 * AMORLINC
 * DB
 * DDB
-* IRR
 * MIRR
-* NPV
 * PPMT
 * SLN
 * SYD

data/lib/exonio.rb

@@ -1,5 +1,11 @@
-require "exonio/version"
-require "exonio/financial"
+require 'bigdecimal'
+require 'bigdecimal/newton'
+
+require 'exonio/version'
+require 'exonio/financial'
+require 'exonio/helpers'
+
+include Newton
 
 module Exonio
   extend Financial

data/lib/exonio/financial.rb

@@ -144,6 +144,45 @@ module Exonio
       next_guess
     end
 
+    # Calculates the net present value of an investment based on a
+    # series of periodic cash flows and a discount rate.
+    #
+    # @param discount [Float] The discount rate of the investment over one period
+    # @param cashflows [Array] The first future cash flow + additional future cash flows
+    #
+    # @return [Float]
+    #
+    # @example
+    #   Exonio.npv(0.281, [-100, 39, 59, 55, 20]) # ==> -0.00661872883563408
+    #
+    def npv(discount, cashflows)
+      total = 0
+
+      cashflows.each_with_index do |cashflow, index|
+        total += cashflow / (1 + discount) ** (index + 1)
+      end
+
+      total
+    end
+
+    # Calculates the internal rate of return on an investment based on a
+    # series of periodic cash flows.
+    #
+    # @param cashflows [Array] An array containing the income or payments
+    # associated with the investment
+    #
+    # @return [Float]
+    #
+    # @example
+    #   Exonio.irr([-100, 39, 59, 55, 20]) # ==> 0.28094842116...
+    #
+    def irr(values)
+      func = Helpers::IrrHelper.new(values)
+      guess = [ func.zero ]
+      nlsolve( func, guess)
+      guess[0]
+    end
+
     private
 
     # This method was borrowed from the NumPy rate formula

data/lib/exonio/helpers.rb

@@ -0,0 +1,28 @@
+module Exonio
+  module Helpers
+    class IrrHelper
+      values = {
+        eps: '1.0e-16',
+        one: '1.0',
+        two: '2.0',
+        ten: '10.0',
+        zero: '0.0'
+      }
+
+      values.each do |key, value|
+        define_method key do
+          BigDecimal.new(value)
+        end
+      end
+
+      def initialize(transactions)
+        @transactions = transactions
+      end
+
+      def values(x)
+        value = Exonio.npv(x[0].to_f, @transactions)
+        [ value ]
+      end
+    end
+  end
+end

data/lib/exonio/version.rb

@@ -1,3 +1,3 @@
 module Exonio
-  VERSION = "0.4.1"
+  VERSION = "0.5.0"
 end

metadata

@@ -1,14 +1,14 @@
 --- !ruby/object:Gem::Specification
 name: exonio
 version: !ruby/object:Gem::Version
-  version: 0.4.1
+  version: 0.5.0
 platform: ruby
 authors:
 - Rafael Izidoro
 autorequire: 
 bindir: exe
 cert_chain: []
-date: 2016-02-11 00:00:00.000000000 Z
+date: 2016-04-12 00:00:00.000000000 Z
 dependencies:
 - !ruby/object:Gem::Dependency
   name: bundler
@@ -88,6 +88,7 @@ files:
 - exonio.gemspec
 - lib/exonio.rb
 - lib/exonio/financial.rb
+- lib/exonio/helpers.rb
 - lib/exonio/version.rb
 homepage: http://github.com/noverde/exonio
 licenses: []