package com.imsl.test.example.finance;

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

/**
 * <p>
 * Computes the internal rate of return of an investment with variable
 * schedule.</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="FinanceXirrEx1.java">Code</a>
 * @see <a href="doc-files/FinanceXirrEx1.out">Output</a>
 */

public class FinanceXirrEx1 {

    static final DateFormat dateFormat
            = DateFormat.getDateInstance(DateFormat.SHORT, Locale.US);

    private static Date parse(String s) throws ParseException {
        return dateFormat.parse(s);
    }

    public static void main(String args[]) throws ParseException {
        double[] pmt = {-4500., -800., 800., 800., 600., 600.,
            800., 800., 700., 3000.};
        Date dates[] = {
            parse("1/1/98"), parse("10/1/98"), parse("5/5/99"),
            parse("5/5/00"), parse("6/1/01"), parse("7/1/02"),
            parse("8/30/03"), parse("9/15/04"), parse("10/15/05"),
            parse("11/1/06")
        };
        double xirr = Finance.xirr(pmt, dates);
        NumberFormat nf = NumberFormat.getPercentInstance();
        nf.setMaximumFractionDigits(2);
        System.out.println("After approximately 9 years, the internal rate "
                + "of return on the cows is " + nf.format(xirr));
    }
}