numpy.npv¶

numpy.npv(rate, values)¶

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. Must be the same increment as the rate.

Returns:

out : float

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

Notes

Returns the result of:

$\sum_{t=1}^M{\frac{values_t}{(1+rate)^{t}}}$