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+clear ;
+clc;
+// Example 3.14
+printf('Example 3.14\n\n');
+printf('Page No. 74\n\n');
+
+// given
+n = 5;//years
+C = 80000;// Cost of the project in Pound
+Cash_in = [10000 20000 30000 40000 50000]// Cash inflow in Pound
+r_d1 = 15;// Discount factor of 15%
+r_d2 = 18 ;// Discount factor of 18%
+r_d3 = 20;// Discount factor of 20%
+
+//At discount of 15%
+df_1 = [0.870 0.756 0.658 0.572 0.497]// Discount factor for every year
+PV_1 = [8700 15120 19740 22880 24850]// Present value
+Net_1 = sum (PV_1);// net present value
+
+
+//At discount of 18%
+df_2 = [0.847 0.718 0.609 0.516 0.437]// Discount factor for every year
+PV_2 = [8470 14360 18270 20640 21850]// Present value
+Net_2 = sum (PV_2);// net present value
+
+
+//At discount of 20%
+df_3 = [0.833 0.694 0.579 0.482 0.402]// Discount factor for every year
+PV_3 = [8330 13880 17370 19280 20100]// Present value
+Net_3 = sum (PV_3);// net present value
+
+// f = N.P.V. cash inflow - N.P.V. cash outflow
+//(1) By Numerical Method
+ff = 2*((sum (PV_2) - C)/(sum (PV_2) - sum(PV_3)));// in percentage
+f = 18 + ff;
+printf('the internal rate of return in percentage is %3.2f \n\n',f)// Deviation in answer due to direct substitution
+
+//(2) By Graphical Interpolation
+f_1 = (sum (PV_1) - C)/10^3;//At discount factor of 15%
+f_2 = (sum (PV_2) - C)/10^3;//At discount factor of 18%
+f_3 = (sum (PV_3) - C)/10^3;//At discount factor of 20%
+
+x = [f_1 f_2 f_3];
+y = [r_d1 r_d2 r_d3];
+plot(x,y,'r*');
+
+plot2d (x,y);// please see the corresponding graph in graphic window
+xtitle('Discount factor against f','f ( *10^3 Pound)','Discount factor(%)')
+regress(x,y)
+coefs = regress(x,y);
+printf('the internal rate of return in percentage is %3.1f \n',coefs(1))// Deviation in answer due to direct substitution
+
+