> It is well known, and your links show how, to use Newton's algorithm > (aka Newton Raphson's algorithm) to find the IRR, since it's really > find a root of a polynomial (see the other post by Jeffery Kantor, > which also describes the fact that depending on the cash flows, there > could be multiple solutions). >
Newton-Raphson's method is not a good choice in this case because i) it requires an initial guess, ii) it is able to find only one root; iii) it may not converge. To find all roots of a polynomial it is much better to use a specialized algorithm, for example, QD-algorithm or Bairstow's algorithm. Note also that roots of polynomials of high degree are extremely sensible to round-off errors in specifying the polynomial coefficients, so I belive that there should exist another formulation of IRR. _______________________________________________ Help-glpk mailing list [email protected] https://lists.gnu.org/mailman/listinfo/help-glpk
