package com.imsl.test.example.finance;

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

/**
 * <p>
 * Computes the modified internal rate of return on an investment.</p>
 *
 * A farmer uses a $4500 loan to buy 10 young cows and a bull. The interest rate
 * on the loan is 8%. He expects to reinvest the profits received in any one
 * year in the money market and receive 5.5%. 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
 * modified internal rate of return is computed after 9 years.
 *
 * @see <a href="FinanceMirrEx1.java">Code</a>
 * @see <a href="doc-files/FinanceMirrEx1.out">Output</a>
 */

public class FinanceMirrEx1 {

    public static void main(String args[]) {
        double[] value = {-4500., -800., 800., 800., 600., 600.,
            800., 800., 700., 3000.};
        double financeRate = .08;
        double reinvestRate = .055;
        double mirr = Finance.mirr(value, financeRate, reinvestRate);
        NumberFormat nf = NumberFormat.getPercentInstance();
        nf.setMaximumFractionDigits(2);
        System.out.println("After 9 years, the modified internal rate of "
                + "return on the cows is " + nf.format(mirr));
    }
}