IRR bitcoin help

Question

IRR

Let's continue with our Bitcoin project!

You decide to start a Bitcoin mining business in January of 2017. You make an initial investment of $500K to buy the required mining hardware.
Each year the hardware can mine 10 bitcoins, so your first return will come on January 1, 2018.

Task
Calculate the return for each year and output the IRR of the project.

Hint
Create an array with the initial investment as the first element (with a negative value), followed by the cost of 10 bitcoins per year -- multiply the values of the given array by 10 and accordingly add them to the list you created, placing them after the investment value.

Expected result
0.07297215919675315

Use npf.irr() function to calculate the IRR.

import numpy as np
import numpy_financial as npf
#price for 2018-2021
bitcoin = [3869.47, 7188.46, 22203.31, 29391.78]
res = np.std(bitcoin )
print (res)

Answer 1

Vedansh Sharma ,

the code you have shown here is not what is required in your description. you are calculating the standard deviation, but it is mentioned to use the irr() function.

may be you mixed something up, so please review these both code repos: 6.2 and 10.2 in the tutorial *python for finance*

Answer 2

import numpy as np
import numpy_financial as npf

#price for 2018-2021
bitcoin = [3869.47, 7188.46, 22203.31, 29391.78]
print(np.std(bitcoin ))
x=[-500000,np.std(bitcoin)*10]
print (npf.irr(x))
Perfect solution