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 paper introduces what may be formally referred to as the Sharma IRR Method — a deterministic, closed-form alternative to the Newton-Raphson IRR technique commonly used in spreadsheets and financial models. Note: This paper has been updated. Please refer to Version 2 for formal naming of the Sharma IRR Method and attribution details.