qfinbox.tvm.cashflow.net_present_value

qfinbox.tvm.cashflow.net_present_value(cash_flows: List[float] | ndarray, discount_rate: float) → float

Calculate net present value of cash flows.

Parameters:

• cash_flows (array-like) – Series of cash flows, with initial investment as negative value.

• discount_rate (float) – Discount rate (as decimal).

Returns:

Net present value.

Return type:

float

Examples

>>> cash_flows = [-100000, 30000, 40000, 50000]
>>> net_present_value(cash_flows, 0.10)
4349.34