present_value_schedule
Evaluates the present value for a schedule of cash flows. It is not necessary that the cash flows be periodic.
Synopsis
#include <imsl.h>
float imsl_f_present_value_schedule (float rate, int count, float values[], struct tm dates[])
The type double function is imsl_d_present_value_schedule.
Required Arguments
float rate (Input)
Interest rate.
int count (Input)
Number of cash flows in values or number of dates in dates.
float values[] (Input)
Array of size count of cash flows.
struct tm dates[] (Input)
Array of size
count of dates cash flows are made. For a more detailed discussion on dates see the
Usage Notes section of this chapter.
Return Value
The present value for a schedule of cash flows that is not necessarily periodic. If no result can be computed, NaN is returned.
Description
Function imsl_f_present_value_schedule computes the present value for a schedule of cash flows that is not necessarily periodic.
It can be found by solving the following:
In the equation above, di represents the i-th payment date, d1 represents the 1st payment date, and valuei represents the i-th cash flow.
Example
In this example, imsl_f_present_value_schedule computes the present value of 3 payments, $1,000, $2,000 and $1,000, with an interest rate of 5% made on January 3, 1997, January 3, 1999 and January 3, 2000.
#include <stdio.h>
#include <imsl.h>
int main()
{
float rate = 0.05;
float values[3] = { 1000.0, 2000.0, 1000.0 };
struct tm dates[3];
float xnpv;
dates[0].tm_year = 97; dates[0].tm_mon = 0; dates[0].tm_mday = 3;
dates[1].tm_year = 99; dates[1].tm_mon = 0; dates[1].tm_mday = 3;
dates[2].tm_year = 100; dates[2].tm_mon = 0; dates[2].tm_mday = 3;
xnpv = imsl_f_present_value_schedule (rate, 3, values, dates);
printf ("The present value of the cash flows is $%.2f.\n", xnpv);
}
Output
The present value of the cash flows is $3677.90.