Book Image

NumPy: Beginner's Guide

By : Ivan Idris
Book Image

NumPy: Beginner's Guide

By: Ivan Idris

Overview of this book

Table of Contents (21 chapters)
NumPy Beginner's Guide Third Edition
Credits
About the Author
About the Reviewers
www.PacktPub.com
Preface
NumPy Functions' References
Index

Time for action – calculating the net present value


We will calculate the net present value for a random generated cash flow series:

  1. Generate five random values for the cash flow series. Insert -100 as the start value:

    cashflows = np.random.randint(100, size=5)
    cashflows = np.insert(cashflows, 0, -100)
    print("Cashflows", cashflows)

    The cash flows would be as follows:

    Cashflows [-100   38   48   90   17   36]
    
  2. Call the npv() function to calculate the net present value from the cash flow series we generated in the previous step. Use a rate of 3 percent:

    print("Net present value", np.npv(0.03, cashflows))

    The net present value:

    Net present value 107.435682443
    

What just happened?

We computed the net present value from a random generated cash flow series with the NumPy npv() function (see netpresentvalue.py):

from __future__ import print_function
import numpy as np

cashflows = np.random.randint(100, size=5)
cashflows = np.insert(cashflows, 0, -100)
print("Cashflows", cashflows)

print("Net present...