Finance[cashflows]  present value of a list of cash flows

Calling Sequence


cashflows(flows, rate)


Parameters


flows



list of cash flows, one per period, starting at period = 1

rate



interest rate per period





Description


•

The function cashflows computes the present value of a list of cash flows. The flows are given one per period, starting at period 1.

•

Since cashflows used to be part of the (now deprecated) finance package, for compatibility with older worksheets, this command can also be called using finance[cashflows]. However, it is recommended that you use the superseding package name, Finance, instead: Finance[cashflows].



Compatibility


•

The Finance[cashflows] command was introduced in Maple 15.



Examples


I will receive 100 units, 200 units and 50 units at the end of this year, and at the end of the next 2 years. If the discount rate is 10%, this is equivalent to receiving immediately the amount of:
>


>


 (1) 
If these cash flows are generated from an initial investment of 95 units, the net present value is
>


 (2) 
Since the net present value (npv) is positive, the project would be accepted on that basis.
What is the internal rate of return?
>


 (3) 
>


 (4) 
The internal return is 115%. Since this is bigger than the discount rate the project would be also be accepted on the IRR basis. One can see the npv versus rate by plotting
>


It is prudent to do this plotting, since it is possible to have multiple solutions to the IRR relationship (npv=0).


Download Help Document
Was this information helpful?