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Finance[cashflows] - present value of a list of cash flows
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Calling Sequence
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cashflows(flows, rate)
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Parameters
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flows
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list of cash flows, one per period, starting at period = 1
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rate
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interest rate per period
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Description
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The function cashflows() computes the present value of a list of cash flows. The flows are given one per period, starting at period 1
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This function is part of the finance package.
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The command with(Finance,cashflows) allows the use of the abbreviated form of this command.
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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].
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Compatibility
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The Finance[cashflows] command was introduced in Maple 15.
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Examples
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I will receive 100 U, 200 U and 50 U 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:
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![cashflows([100, 200, 50], .1)](/support/helpjp/helpview.aspx?si=8937/file01707/math91.png)
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If these cash flows are generated from an initial investment of 95 units, the net present value is
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![-95+cashflows([100, 200, 50], .1)](/support/helpjp/helpview.aspx?si=8937/file01707/math100.png)
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Since the npv is positive, the project would be accepted on that basis.
What is the internal rate of return?
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![npv := -95+cashflows([100, 200, 50], r)](/support/helpjp/helpview.aspx?si=8937/file01707/math111.png)
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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
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It is prudent to do this plotting, since it is possible to have multiple solutions to the IRR relationship (npv=0).
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Download Help Document
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