This is a simple function I use to calculate IRR. However, there are incidences when all cash flows are negative and return "Error in uniroot(npv, c(0, 1), cf = cf) : f() values at end points not of opposite sign." Is there any way I can put if statement so that when IRR can't be computed, R simply returns 0?
npv<-function(i,cf,t=seq(along=cf)) sum (cf/(1+i)^t)
irr <- function(cf) {uniroot(npv, c(0,1), cf=cf)$root }
irr(cf)
You could use the all
function:
irr <- function(cf) {
if(all(cf < 0)) return(0)
uniroot(npv, c(0,1), cf=cf)$root
}
all
function returns TRUE, the return
function will return 0 and then exit the function.all
function returns FALSE, then the uniroot
function will run as it did previously.