financial.present_value

Reference: https://www.investopedia.com/terms/p/presentvalue.asp

An algorithm that calculates the present value of a stream of yearly cash flows given… 1. The discount rate (as a decimal, not a percent) 2. An array of cash flows, with the index of the cash flow being the associated year

Note: This algorithm assumes that cash flows are paid at the end of the specified year

Functions

present_value(→ float)

Module Contents

financial.present_value.present_value(discount_rate: float, cash_flows: list[float]) → float

>>> present_value(0.13, [10, 20.70, -293, 297])
4.69
>>> present_value(0.07, [-109129.39, 30923.23, 15098.93, 29734,39])
-42739.63
>>> present_value(0.07, [109129.39, 30923.23, 15098.93, 29734,39])
175519.15
>>> present_value(-1, [109129.39, 30923.23, 15098.93, 29734,39])
Traceback (most recent call last):
    ...
ValueError: Discount rate cannot be negative
>>> present_value(0.03, [])
Traceback (most recent call last):
    ...
ValueError: Cash flows list cannot be empty