/value-of-time

Pricing NPV considering Riskless future cash flows along with Perpetuity, Growing Perpetuity, Annuity, Growing Annuity and Internal Rate of Returns

Primary LanguageC++MIT LicenseMIT

Value of Time

We calculate multiple scenarios ignoring the Risk while just considering the Discrete Value of Time for the following scenarios.

1. Calculating the Net Present Value with Discrete Compounding considering a Fixed Spot Rate

Execute using:

           g++ -pedantic-errors -std=c++11 pv_riskless_fcf_ft.cpp -o npv

           ./npv

... Sample Output ...

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2. Calculating Perpetuity (Promise of a payment of a Fixed Amount X each period for the indefinite future with a Fixed Spot Rate)

Execute using:

           g++ -pedantic-errors -std=c++11 perpetuity.cpp -o perpetuity

           ./perpetuity 10000 7.5

... Sample Output ...

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...

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3. Calculating Growing Perpetuity (An infinite sequence of cashflows, where the payment the first year is Fixed Amount X and each consequent payment grows by a constant rate)

Execute using:

           g++ -pedantic-errors -std=c++11 growingperpetuity.cpp -o growingperpetuity

           ./growingperpetuity 10000 5.5 2.5

... Sample Output ...

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...

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4. Calculating Annuity (A sequence of Cash Flows for a given number of years, say T periods into the future, while considering an Annuity paying a Fixed Amount X each period with a Spot Fixed Rate r)

Execute using:

           g++ -pedantic-errors -std=c++11 annuity.cpp -o annuity

           ./annuity 10000 3.5 10

... Sample Output ...

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5. Calculating Growing Annuity (A sequence of Cash Flows for a given number of years, say T periods into the future, where each payment grows by a given factor each year)

Execute using:

           g++ -pedantic-errors -std=c++11 growingannuity.cpp -o growingannuity

           ./growingannuity 10000 6 3.5 10

... Sample Output ...

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6. Estimating the Internal Rate of Return for a series of inputted Cash Flows

Execute using:

           g++ -pedantic-errors -std=c++11 internalrateofreturn.cpp -o iror

           ./iror -110 10 100

... Sample Output ...

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~~ Sankalok Sen ~~