Modern Finance PresentValue

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PresentValue

Returns what a stream of payments plus a final amount is worth today.

Syntax

PresentValue( annuityTerms )

Examples

#import "std/money"
using money

'' What a stream of payments plus a final lump is worth today.
'' CASH-FLOW SIGNS: money received is positive, money paid is negative,
'' which is what makes the identity balance to zero.
dim as Decimal i = DecimalParse( "0.005" ).Value( )

'' Receiving 100 a month for 24 months costs this much today.
dim as AnnuityTerms t = AnnuityTermsMake( i, 24, DecimalParse( "-100" ).Value( ), _
                                          DecimalZero( ), DecimalZero( ), _
                                          PAY_END_OF_PERIOD )
print PresentValue( t ).Value( ).ToStringFixed( 2 )      '' 2256.29

'' At a zero rate it is simply the sum of the payments -- taken by an
'' explicit limit rather than a division by zero.
dim as AnnuityTerms z = AnnuityTermsMake( DecimalZero( ), 24, _
                                          DecimalParse( "-100" ).Value( ), _
                                          DecimalZero( ), DecimalZero( ), _
                                          PAY_END_OF_PERIOD )
print PresentValue( z ).Value( ).ToString( )             '' 2400

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