Class TimeValue

Implements time value financial functions such as: PV, NPV, IRR

Inheritance

System.Object

TimeValue

Inherited Members

System.Object.Equals(System.Object)

System.Object.Equals(System.Object, System.Object)

System.Object.GetHashCode()

System.Object.GetType()

System.Object.MemberwiseClone()

System.Object.ReferenceEquals(System.Object, System.Object)

System.Object.ToString()

Namespace: Azos.Financial

Assembly: Azos.dll

Syntax

public static class TimeValue

Methods

FV(Double, Double, Int32)

Returns future value of presently-valued amount in X number of periods at a certain interest rate

Declaration

public static double FV(double pv, double intRate, int periods)

Parameters

Type	Name	Description
System.Double	pv	Present value
System.Double	intRate	Interest rate
System.Int32	periods	Period length

Returns

Type	Description
System.Double	Future value

Examples

$100 loaned for 1 period at 5% interest per period have future value of $105; same amount loaned for 10 periods at the same rate would have future value of $162.89

IRR(IEnumerable<Double>, Double)

Calculates the internal rate of return over series of cash flows

Declaration

public static double IRR(IEnumerable<double> cashFlows, double estimatedResult)

Parameters

Type	Name	Description
System.Collections.Generic.IEnumerable<System.Double>	cashFlows
System.Double	estimatedResult

Returns

Type	Description
System.Double

NPV(IEnumerable<Double>, Double)

Returns a net present value calculated over series of cashflows

Declaration

public static double NPV(IEnumerable<double> cashFlows, double discountRate)

Parameters

Type	Name	Description
System.Collections.Generic.IEnumerable<System.Double>	cashFlows	A series of net cashflows per period(supplied as a summ of inflows and outflows), usually the first cashflow is an outflow of initial project investment
System.Double	discountRate	Interest rate used for net cashflow discount

Returns

Type	Description
System.Double	Net present value

PV(Double, Double, Int32)

Returns present value of amount returned in X number of periods at a certain interest rate

Declaration

public static double PV(double fv, double intRate, int periods)

Parameters

Type	Name	Description
System.Double	fv	Future value (returned amount in X periods)
System.Double	intRate	Interest rate per period
System.Int32	periods	Period length

Returns

Type	Description
System.Double	Present Value

Examples

Assume that A gives $100 cash to B. B returns the same amount to A in 1 year. Banks give 5% annual rate, therefore present value of this $100 dollar returned is going to be $95.24 - A lost $4.76, because B did not pay any interest and A could have deposited $100 in regular bank instead of giving it to B. Had A charged B 5% interest rate , A would have made money.