package com.imsl.test.example.finance;

import com.imsl.finance.*;
import java.text.NumberFormat;

/**
 * <p>
 * Computes the internal rate of return on an investment.</p>
 *
 * A farmer buys 10 young cows and a bull for $4500. The first year he does not
 * expect to sell any calves, he just expects to feed them. Thereafter, he
 * expects to be able to sell calves to offset the cost of feed. He expects them
 * to be productive for 9 years, after which time he will liquidate the herd.
 * The internal rate of return is computed after 9 years.
 *
 *
 * @see <a href="FinanceIrrEx1.java">Code</a>
 * @see <a href="doc-files/FinanceIrrEx1.out">Output</a>
 */

public class FinanceIrrEx1 {

    public static void main(String args[]) {
        double[] pmt = {-4500., -800., 800., 800., 600., 600.,
            800., 800., 700., 3000.};

        double irr = Finance.irr(pmt);
        NumberFormat nf = NumberFormat.getPercentInstance();
        nf.setMaximumFractionDigits(2);
        System.out.println("After 9 years, the internal rate of return on "
                + "the cows is " + nf.format(irr));
    }
}