Modern Finance DiscountedPaybackPeriod

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DiscountedPaybackPeriod

Returns when the running total of discounted flows turns positive, or empty if never.

Syntax

DiscountedPaybackPeriod( flows( ), ratePerPeriod )

Examples

#import "std/money"
using money

'' Payback measured on DISCOUNTED flows, so later money counts for less.
'' Always at least as long as the undiscounted figure.
dim as Decimal f( 0 to 4 ) = { DecimalParse( "-1000" ).Value( ), _
                               DecimalParse( "300" ).Value( ), _
                               DecimalParse( "400" ).Value( ), _
                               DecimalParse( "500" ).Value( ), _
                               DecimalParse( "200" ).Value( ) }

print PaybackPeriod( f( ) ).Value( )                                   '' 2.6
print DiscountedPaybackPeriod( f( ), DecimalParse( "0.10" ).Value( ) ).Value( )   '' 3.154...

'' Discounting can turn a paying project into a non-paying one, which is
'' the whole reason to compute it.
dim as Decimal thin_( 0 to 3 ) = { DecimalParse( "-1000" ).Value( ), _
                                   DecimalFromInt( 340 ), DecimalFromInt( 340 ), _
                                   DecimalFromInt( 340 ) }
print PaybackPeriod( thin_( ) ).HasValue( )                            '' true
print DiscountedPaybackPeriod( thin_( ), DecimalParse( "0.20" ).Value( ) ).HasValue( )  '' false

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Library: Finance
Category: Finance
Documented under: Nothing Becomes A Keyword
Source: pkg/std/money/fincash.tiko in the tiko repository.