On Feb 8, 2008 3:01 PM, Ruby Quiz <james / grayproductions.net> wrote: > The three rules of Ruby Quiz: > > 1. Please do not post any solutions or spoiler discussion for this quiz until > 48 hours have passed from the time on this message. > > 2. Support Ruby Quiz by submitting ideas as often as you can: > > http://www.rubyquiz.com/ > > 3. Enjoy! > > Suggestion: A [QUIZ] in the subject of emails about the problem helps everyone > on Ruby Talk follow the discussion. Please reply to the original quiz message, > if you can. > > -=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= > > by Harrison Reiser > > Internal Rate of Return (IRR > http://en.wikipedia.org/wiki/Internal_rate_of_return) is a common financial > metric, used by investment firms to predict the profitability of a company or > project. Finding the IRR of a company amounts to solving for it in the equation > for Net Present Value (NPV ¥£C http://en.wikipedia.org/wiki/Net_present_value), > another valuable decision-making metric: > > N C_t > NPV = ¥ò¥¤ ------------ > t=0 (1 + IRR)**t > > This week's quiz is to calculate the IRR for any given variable-length list of > numbers, which represent yearly cash flows, the C_t's in the formula above: C_0, > C_1, etc. (C_0 is typically a negative value, corresponding to the initial > investment into the project.) From the example in the Wikipedia article > (http://en.wikipedia.org/wiki/Internal_rate_of_return), for instance, you should > be able to produce a rate of 17.09% (to four decimal places, let's say) from > this or a similar command: > > irr([-100,+30,+35,+40,+45]) > => 0.1709... > > Keep in mind that an IRR greater than 100% is possible. Extra credit if you can > also correctly handle input that produces negative rates, disregarding the fact > that they make no sense. > > This must be a strange moment for you or maybe it is too early to say THANK YOU FOR ALL THE FISH ;), as you still have a summary to do, but I feel very strange by reading the "last Ruby Quiz". Robert -- http://ruby-smalltalk.blogspot.com/ --- Whereof one cannot speak, thereof one must be silent. Ludwig Wittgenstein