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[Invest] Design ROI Calculation Engine #6

Description

@NeftaliYagua

Description

Design and implement a robust Return on Investment (ROI) calculation engine for property investment analysis.

Acceptance Criteria

  • Cash flow analysis (rental income vs expenses)
  • Cap rate calculation
  • Cash-on-cash return
  • Internal Rate of Return (IRR)
  • Net Present Value (NPV)
  • Gross Rent Multiplier (GRM)
  • Break-even analysis
  • Sensitivity analysis for key variables
  • Tax implications modeling
  • Configurable assumptions and parameters
  • Historical performance tracking
  • Comparative investment analysis

Subtasks

  • Design investment calculation domain model
  • Implement cash flow projection algorithm
  • Create cap rate calculator
  • Implement IRR calculation (Newton-Raphson method)
  • Create NPV calculator with discount rates
  • Add tax calculation module
  • Implement sensitivity analysis
  • Create comparison engine
  • Write comprehensive unit tests
  • Document calculation methodologies
  • Add validation for edge cases

Technical Notes

  • Use decimal type for financial calculations
  • Implement builder pattern for calculation configuration
  • Consider performance for multi-year projections
  • Add validation for realistic input ranges
  • Reference industry-standard formulas (NAREIT, etc.)

Activity

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