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Thanks - merged and added the test based on https://support.microsoft.com/en-us/office/mirr-function-b020f038-7492-4fb4-93c1-35c345b53524 too |
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Thanks! |
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Summary
This PR resolves 2 issues in the MIRR function implementation:
Formula Calculation Issue
The current MIRR implementation produces inaccurate results due to an error in the present value calculation.
Let's take an example from Wikipedia: Modified internal rate of return
Input data:
Calculation result:
The discrepancy appears due to including finance and reinvestment rates in the present value calculation. Only the finance rate should be considered.
Here is a related code fragment:
Input Parameter Order
The current implementation uses a non-standard order for finance and reinvestment rates, unlike common spreadsheet applications (Excel, Google Sheets).
Current order: (values, reinvestRate, financeRate).
Proposed order: (values, financeRate, reinvestRate).
I.e. to calculate the MIRR for the formula mentioned above one have pass the following values to
Mirr#evaluate(double[] values)function:-1000D, -4000D, 5000D, 2000D, 0.12D, 0.1Dhowever more the order according to most popular spreadsheet applications would be:
-1000D, -4000D, 5000D, 2000D, 0.1D, 0.12DTesting
A test from Wikipedia has been added to verify the formula accuracy.
All other tests are left intact except for parameter order.