To calculate the IRR using **numpy_financial**:

import numpy_financial as npf irr = npf.irr([initial investment in negative terms, cash flows each year separated by commas]) print(irr)

## Steps to calculate the IRR using numpy_financial

### Step 1: Install the numpy_financial package

If you haven’t already done so, install the **numpy_financial** package using:

pip install numpy_financial

### Step 2: Calculate the IRR using numpy_financial

Imagine that you have the following information about a project:

- The initial investment is
**$1700** - The project is expected to generate:
**$500**in year-1**$750**in year-2**$800**in year-3

What is the IRR?

To calculate the IRR, you’ll need to apply this code in Python:

import numpy_financial as npf irr = npf.irr([-1700, 500, 750, 800]) print(irr)

And if you run this code, you’ll get the IRR of **0.09236** (or 9.236%).