NPV: Net Present Value

In FinancialMath: Financial Mathematics for Actuaries

Description

Calculates the net present value for a series of cash flows, and provides a time diagram of the cash flows.

Usage

NPV(cf0,cf,times,i,plot=FALSE)

Arguments

cf0	cash flow at period 0
cf	vector of cash flows
times	vector of the times for each cash flow
i	interest rate per period
plot	tells whether or not to plot the time diagram of the cash flows

Details

NPV=cf0-∑_{k=1}^n\frac{cf_k}{(1+i)^{times_k}}

Value

The NPV.

Note

The periods in t must be positive integers.

The lengths of cf and t must be equal.

See Also

IRR

Examples

NPV(cf0=100,cf=c(50,40),times=c(3,5),i=.01)

NPV(cf0=100,cf=50,times=3,i=.05)

NPV(cf0=100,cf=c(50,60,10,20),times=c(1,5,9,9),i=.045)

FinancialMath documentation built on May 1, 2019, 11:16 p.m.