matlab pvvar,Present value of varying cash flow

Regular Cash Flow

This cash flow represents the yearly income from an initial investment of $10,000. The annual interest rate is 8%.

Year 1 - $2000

Year 2 - $1500

Year 3 - $3000

Year 4 - $3800

Year 5 - $5000

To calculate the net present value of this regular cash flow:

PresentVal = pvvar([-10000 2000 1500 3000 3800 5000], 0.08)

PresentVal = 1.7154e+03

Irregular Cash Flow

An investment of $10,000 returns this irregular cash flow. The original investment and its date are included. The periodic interest rate is 9%.

January 12, 1987 - ($1000)

February 14, 1988 - $1500

March 3, 1988 - $2000

June 14, 1988 - $3000

December 1, 1988 - $4000

To calculate the net present value of this irregular cash flow:

CashFlow = [-10000, 2500, 2000, 3000, 4000];

CFDates = ['01/12/1987'

'02/14/1988'

'03/03/1988'

'06/14/1988'

'12/01/1988'];

PresentVal = pvvar(CashFlow, 0.09, CFDates)

PresentVal = 142.1648

The net present value of the same investment under different discount rates of 7%, 9%, and 11% is obtained by:

PresentVal = pvvar(repmat(CashFlow,3,1)', [.07 .09 .11], CFDates)

PresentVal = 1×3

419.0136 142.1648 -122.1275