npv: NPV – Net Present Value

In jla-data/TVM: Fifty Shades of Cash Flow Discounting

NPV – Net Present Value

Description

Discounted value of future cash flows; the date of the first cash flow is considered as origin.

Usage

npv(
  irate,
  cashflows,
  dates,
  method = "compound",
  convention = "ACT/365",
  silent = FALSE
)

Arguments

irate	Interest rate per annum. Either a scalar value, or vector.
cashflows	Cash flows, as a vector.
dates	Value dates for the cashflows vector.
method	Compound or simple interest? Default is compound.
convention	Interest rate convention; default is "ACT/365".
silent	Should warning messages be suppressed? Default is no.

Value

Net present value of future cash flows

See Also

dcf

Examples

one_thousand <- npv(
  irate = 10 / 100, # i.e. 10% p.a.
  dates = as.Date(c("2019-01-01", "2020-01-01")), # i.e. one year
  cashflows = c(0, 1100)
)

cat(one_thousand)

jla-data/TVM documentation built on Feb. 3, 2024, 8:48 p.m.