Internal Rate of Return (IRR)

This component computes the IRR (Internal Rate of Return) just like in spreadsheet tools like Microsoft Excel and Google Sheet. Adopt this component to track the profitability of one or more investment projects with periodic transactions/cash flows.

The component adopts the Java library ‘apache-poi’ version 5.2.3 (Apache license). More info available at: github.com/apache/poi

DISCLAIMER: To adopt this library the component downloads on its first execution in a new workflow from dlcdn.apache.org. Make sure your KNIME has internet access when executing the component in a new workflow for the first time.

The component calculates the internal rate of return for a schedule of periodic cash flows. It starts from a series of cash flows to approximate the value of IRR for each of the defined portfolio/project that the cash flows are grouped by. Make sure that you have at least one column for the cash flows (for each portfolio/project the first transaction needs to be negative) and one column for the project/portfolio by which you want the transactions to be grouped by.

Microsoft Excel Docs: support.microsoft.com/en-us/office/irr-function-64925eaa-9988-495b-b290-3ad0c163c1bc

Google Sheets Docs: support.google.com/docs/answer/3093231

This component, verified by KNIME, was developed by finance analytics experts at Mydral, KNIME Partner of the Year 2022: mydral.com/en/knime-uk

Input ports

1. Type: Table
   Investments Data
   A KNIME Table where each row represents a financial transaction. A column of type String is necessary to identify the financial project/portfolio. A column of type Double or Integer is necessary to identify the value of the financial transactions.

Output ports

1. Type: Table
   IRR
   A table is returned with a column for the name of the project/portfolio and a column for the IRR value of each project.