Indian Mathematical Logic for Project Finance: A Framework for IRR Estimation

This paper introduces a heuristic framework for estimating the Internal Rate of Return (IRR) using principles from classical Indian mathematics. It applies sutras like Urdhva-Tiryak, Nikhilam, and Anurupyena to construct a mental model for IRR verification — especially in project finance contexts. A worked example is included using split multiplication and geometric progression approximations to validate IRR for a recurring cash flow project. The framework is proposed as a pedagogical and analytical tool, merging ancient Indian logic with modern financial reasoning. This framework introduces what may be formally referred to as the Sharma IRR Method — a deterministic, closed-form alternative to Newton-Raphson IRR, with applications in finance, energy modeling, and simulations.