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/* ====================================================================
Licensed to the Apache Software Foundation (ASF) under one or more
contributor license agreements. See the NOTICE file distributed with
this work for additional information regarding copyright ownership.
The ASF licenses this file to You under the Apache License, Version 2.0
(the "License"); you may not use this file except in compliance with
the License. You may obtain a copy of the License at
http://www.apache.org/licenses/LICENSE-2.0
Unless required by applicable law or agreed to in writing, software
distributed under the License is distributed on an "AS IS" BASIS,
WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
See the License for the specific language governing permissions and
limitations under the License.
==================================================================== */
package org.apache.poi.ss.formula.functions;
import java.util.Arrays;
import org.apache.poi.ss.formula.eval.ErrorEval;
import org.apache.poi.ss.formula.eval.EvaluationException;
/**
* Calculates Modified internal rate of return. Syntax is MIRR(cash_flow_values, finance_rate, reinvest_rate)
*
* Returns the modified internal rate of return for a series of periodic cash flows. MIRR considers both the cost
* of the investment and the interest received on reinvestment of cash.
*
* Values is an array or a reference to cells that contain numbers. These numbers represent a series of payments (negative values) and income (positive values) occurring at regular periods.
*
* - Values must contain at least one positive value and one negative value to calculate the modified internal rate of return. Otherwise, MIRR returns the #DIV/0! error value.
* - If an array or reference argument contains text, logical values, or empty cells, those values are ignored; however, cells with the value zero are included.
*
*
* Finance_rate is the interest rate you pay on the money used in the cash flows.
* Reinvest_rate is the interest rate you receive on the cash flows as you reinvest them.
*
* @see Wikipedia on MIRR
* @see Excel MIRR
* @see Irr
*/
public class Mirr extends MultiOperandNumericFunction {
public Mirr() {
super(false, false);
}
@Override
protected int getMaxNumOperands() {
return 3;
}
@Override
protected double evaluate(double[] values) throws EvaluationException {
double financeRate = values[values.length-1];
double reinvestRate = values[values.length-2];
double[] mirrValues = Arrays.copyOf(values, values.length - 2);
boolean mirrValuesAreAllNegatives = true;
for (double mirrValue : mirrValues) {
mirrValuesAreAllNegatives &= mirrValue < 0;
}
if (mirrValuesAreAllNegatives) {
return -1.0d;
}
boolean mirrValuesAreAllPositives = true;
for (double mirrValue : mirrValues) {
mirrValuesAreAllPositives &= mirrValue > 0;
}
if (mirrValuesAreAllPositives) {
throw new EvaluationException(ErrorEval.DIV_ZERO);
}
return mirr(mirrValues, financeRate, reinvestRate);
}
private static double mirr(double[] in, double financeRate, double reinvestRate) {
double value = 0;
double numOfYears = in.length - 1.;
double pv = 0;
double fv = 0;
int indexN = 0;
for (double anIn : in) {
if (anIn < 0) {
pv += anIn / Math.pow(1 + financeRate + reinvestRate, indexN++);
}
}
for (double anIn : in) {
if (anIn > 0) {
fv += anIn * Math.pow(1 + financeRate, numOfYears - indexN++);
}
}
if (fv != 0 && pv != 0) {
value = Math.pow(-fv / pv, 1d / numOfYears) - 1;
}
return value;
}
}
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