feature: Irr function

README.md

@@ -22,7 +22,7 @@ which are as follows:
 | nper                         |  ✅   |    Computes the number of periodic payments|
 | pv                           |  ✅   |   Computes the present value of a payment|
 | rate                         |  ✅   |    Computes the rate of interest per period|
-| irr                          |      |    Computes the internal rate of return|
+| irr                          |  ✅   |    Computes the internal rate of return|
 | npv                          |  ✅   |   Computes the net present value of a series of cash flow|
 | mirr                         |      |    Computes the modified internal rate of return|
 
@@ -49,6 +49,8 @@ While the numpy-financial package contains a set of elementary financial functio
     + [Example(Nper-Loan)](#examplenper-loan)
   * [Rate(Interest Rate)](#rate)
 	+ [Example(Rate-Investment)](#examplerate-investment)
+  * [Irr(Internal Rate of Return)](#irr)
+	+ [Example(Irr)](#exampleirr)
 
  Detailed documentation is available at [godoc](https://godoc.org/github.com/razorpay/go-financial).
 ## Amortisation(Generate Table)  
@@ -638,3 +640,58 @@ func main() {
 }
 ```
 [Run on go-playground](https://play.golang.org/p/H2uybe1dbRj)
+
+## Irr  
+
+```go
+func Irr(values []decimal.Decimal, maxIter int64, tolerance, prev_point, next_point decimal.Decimal) (decimal.Decimal, error)
+```
+
+Params:  
+```text
+values		: the value of the cash flow for that time period. Values provided here must be an array of float64
+maxIter 	: total number of iterations for which the function should run
+tolerance 	: accept result only if the difference in iteration values is less than the tolerance provided
+prev_point	: an initial point to start approximating from
+next_point	: next point to use for secant
+``` 
+
+Returns:
+```text
+rate    : a rate for the corresponding values
+error   : returns nil if NPV is close to zero (returns an error conversely)
+```
+
+Irr computes the rate to ensure a net zero cashflow
+
+### Example(Irr)
+
+If an initial inflow of $123400 is done followed by successive outflows of $36200, $54800 and $48100; for what value of rate does the npv evalute to zero ? (assuming 100 iterations, 1e-6 threshold and 0.1 and 0.2 as initial guessing points)
+
+```go
+package main
+
+import (
+	"fmt"
+	gofinancial "github.com/razorpay/go-financial"	
+	"github.com/shopspring/decimal"
+)
+
+func main() {
+	cashflow := []decimal.Decimal{decimal.NewFromFloat(-123400), decimal.NewFromFloat(36200), decimal.NewFromFloat(54800), decimal.NewFromFloat(48100)}
+	maxIter := 100
+	tolerance := decimal.NewFromFloat(1e-6)
+	prev_point := decimal.NewFromFloat(0.1)
+	next_point := decimal.NewFromFloat(0.2)
+
+	irr, err := gofinancial.Irr(cashflow, maxIter, tolerance, prev_point, next_point)
+	if err != nil {
+		fmt.Printf(err)
+	} else {
+		fmt.Printf("irr: %v ", irr)
+	}
+	// Output:
+	// irr: 0.05961637856732953787613704103503
+}
+```
+[Run on go-playground](https://play.golang.org/p/izqvtBWEOqJ)

reducing_utils.go

@@ -371,3 +371,37 @@ func Rate(pv, fv, pmt decimal.Decimal, nper int64, when paymentperiod.Type, maxI
 	}
 	return nextIterRate, nil
 }
+
+/*
+IRR computes the rate of return for a balanced cashflow (if feasible!) using the secant method of approximation.
+
+Params:
+ values		: the value of the cash flow for that time period. Values provided here must be an array of float64
+ maxIter 	: total number of iterations for which the function should run
+ tolerance 	: accept result only if the difference in iteration values is less than the tolerance provided
+ prev_point	: an initial point to start approximating from
+ next_point	: next point to use for secant
+
+References:
+    [G] L. J. Gitman, "Principles of Managerial Finance, Brief," 3rd ed.,
+    Addison-Wesley, 2003, pg. 348.
+*/
+func Irr(values []decimal.Decimal, maxIter int64, tolerance, prev_point, next_point decimal.Decimal) (decimal.Decimal, error) {
+	x_p := prev_point
+	x_n := next_point
+
+	for i := int64(0); i < maxIter; i++ {
+		y_p := Npv(x_p, values)
+		y_n := Npv(x_n, values)
+		_v1 := x_n.Sub(x_p).Div(y_n.Sub(y_p).Add(decimal.NewFromFloat(0.0000001)))
+		_v2 := y_n.Neg().Mul(_v1)
+		x_n, x_p = x_n.Add(_v2), x_n
+
+	}
+
+	if Npv(x_n, values).LessThan(tolerance) {
+		return x_n, nil
+	}
+
+	return decimal.Zero, ErrOutOfBounds
+}

reducing_utils_test.go

@@ -422,3 +422,64 @@ func Test_Rate(t *testing.T) {
 		})
 	}
 }
+
+func Test_Irr(t *testing.T) {
+	type args struct {
+		cashFlow   []decimal.Decimal
+		maxIter    int64
+		tolerance  decimal.Decimal
+		prev_point decimal.Decimal
+		next_point decimal.Decimal
+	}
+	tests := []struct {
+		name   string
+		args   args
+		want   decimal.Decimal
+		anyErr error
+	}{
+		{
+			name: "success",
+			args: args{
+				cashFlow:   []decimal.Decimal{decimal.NewFromFloat(1000), decimal.NewFromFloat(-900), decimal.NewFromFloat(200), decimal.NewFromFloat(-400)},
+				maxIter:    100,
+				tolerance:  decimal.NewFromFloat(1e-6),
+				prev_point: decimal.NewFromFloat(0.1),
+				next_point: decimal.NewFromFloat(0.2),
+			},
+			want:   decimal.NewFromFloat(0.06491271005017),
+			anyErr: nil,
+		},
+		{
+			name: "success",
+			args: args{
+				cashFlow:   []decimal.Decimal{decimal.NewFromFloat(-123400), decimal.NewFromFloat(36200), decimal.NewFromFloat(54800), decimal.NewFromFloat(48100)},
+				maxIter:    100,
+				tolerance:  decimal.NewFromFloat(1e-6),
+				prev_point: decimal.NewFromFloat(0.1),
+				next_point: decimal.NewFromFloat(0.2),
+			},
+			want:   decimal.NewFromFloat(0.0596163785673),
+			anyErr: nil,
+		},
+		{
+			name: "failure",
+			args: args{
+				cashFlow:   []decimal.Decimal{decimal.NewFromFloat(1000), decimal.NewFromFloat(-900), decimal.NewFromFloat(200)},
+				maxIter:    100,
+				tolerance:  decimal.NewFromFloat(1e-6),
+				prev_point: decimal.NewFromFloat(0.1),
+				next_point: decimal.NewFromFloat(0.2),
+			},
+			want:   decimal.Zero,
+			anyErr: ErrOutOfBounds,
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			if got, err := Irr(tt.args.cashFlow, tt.args.maxIter, tt.args.tolerance, tt.args.prev_point, tt.args.next_point); err != tt.anyErr || isAlmostEqual(got, tt.want, decimal.NewFromFloat(precision)) != nil {
+				t.Errorf("IRR returned (%v,%v), wanted (%v,%v)", got, err, tt.want, tt.anyErr)
+			}
+		})
+	}
+}