numpy.npv

numpy.npv(rate, values)[source]

Returns the NPV (Net Present Value) of a cash flow series.

Parameters :

rate : scalar

The discount rate.

values : array_like, shape(M, )

The values of the time series of cash flows. The (fixed) time interval between cash flow “events” must be the same as that for which rate is given (i.e., if rate is per year, then precisely a year is understood to elapse between each cash flow event). By convention, investments or “deposits” are negative, income or “withdrawals” are positive; values must begin with the initial investment, thus values[0] will typically be negative.

Returns :

out : float

The NPV of the input cash flow series values at the discount rate.

Notes

Returns the result of: [G51]

System Message: WARNING/2 (\sum_{t=0}^M{\frac{values_t}{(1+rate)^{t}}} )

latex exited with error: [stderr] [stdout] This is pdfTeX, Version 3.1415926-2.5-1.40.14 (TeX Live 2013/TeX Live for SUSE Linux) restricted \write18 enabled. entering extended mode (./math.tex LaTeX2e <2011/06/27> Babel <3.9f> and hyphenation patterns for 78 languages loaded. (/usr/share/texmf/tex/latex/base/article.cls Document Class: article 2007/10/19 v1.4h Standard LaTeX document class (/usr/share/texmf/tex/latex/base/size12.clo)) (/usr/share/texmf/tex/latex/base/inputenc.sty ! LaTeX Error: File `utf8x.def’ not found. Type X to quit or <RETURN> to proceed, or enter new name. (Default extension: def) Enter file name: ! Emergency stop. <read *> l.131 \endinput ^^M No pages of output. Transcript written on math.log.

References

[G51](1, 2) L. J. Gitman, “Principles of Managerial Finance, Brief,” 3rd ed., Addison-Wesley, 2003, pg. 346.

Examples

>>> np.npv(0.281,[-100, 39, 59, 55, 20])
-0.0066187288356340801

(Compare with the Example given for numpy.lib.financial.irr)

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