topic IRR function in SAS Programming

IRR function

deleted_user — Thu, 24 Jul 2008 21:42:48 GMT

Does anyone now how to use the IRR function in SAS?

Here's an example of a cash flow that I used:
Month1: $-3,000
Month2: $600
Month3: $1,200
Month4: $600
Month5: $700

In excel I use the IRR function (=IRR(-3000,600,1200,600,700,.01)) and get a monthly IRR of 1.35%.

In SAS I use the IRR function (monthly_irr=IRR(5,-3000,600,1200,600,700)) and get a monthly IRR of 6.93. INTRR gives .0693.

Does anyone know how to use the SAS IRR function to get 1.35%? In support.sas it says that IRR should be written IRR(frequency,cash1,cash2,...,cashn).

Thanks for the help!!!

Re: IRR function

deleted_user — Fri, 25 Jul 2008 13:55:56 GMT

are you expecting the IRR per period or per year?
A first order approximation indicates (SAS Result)/frequency approx= (excel result)

I guess you might need to check on the excel doc, too

PeteC

Re: IRR function

deleted_user — Fri, 25 Jul 2008 17:28:30 GMT

Hi Pete,

Thanks for the help. My periods are months so I'm looking for it by period and annualy. I thought that the function did it by period as it asks for frequency and then i used this calculation to change it to annual.

annual_irr=((monthly_irr+1)**12)-1;

Thanks again for the help!
Laura

Re: IRR function

deleted_user — Mon, 28 Jul 2008 12:32:58 GMT

you'll find the SAS doc for function INTRR() more helpful, as it includes an example that might clarify the purpose of the FREQ parameter.... see http://support.sas.com/documentation/cdl/en/lrdict/59540/HTML/default/a000245903.htm.