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tvm_npv

Read-onlyIdempotent

Calculate net present value of a cash flow series at a given discount rate. Returns NPV, profitability index, and discounted cash flow breakdown.

Instructions

Net present value of a cash flow series at a given discount rate.

Use when computing net present value of a series of cash flows. Provide discount rate and an array of cash flows (first is typically negative for initial investment). Returns: NPV, profitability index, and discounted cash flow breakdown.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
cash_flowsYesArray of future cash flows (period 1 onward)
discount_rateYesDiscount rate per period
Behavior5/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations provide readOnlyHint=true, destructiveHint=false, and idempotentHint=true. The description adds behavioral context: returns include NPV, profitability index, and discounted cash flow breakdown. No contradictions.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness5/5

Is the description appropriately sized, front-loaded, and free of redundancy?

Three sentences, no wasted words. The key information (purpose, usage, output) is front-loaded and concisely expressed.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness5/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

For a simple tool with 2 parameters and no output schema, the description covers input expectations, output structure (NPV, PI, DCF breakdown), and typical usage pattern. Complete and informative.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters4/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema coverage is 100%. The description adds meaning by noting the first cash flow should be negative and that discount_rate is per period, which goes beyond the schema's property descriptions.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

The description clearly states 'Net present value of a cash flow series' with a specific verb and resource, and distinguishes from sibling TVM tools like tvm_irr and tvm_cagr by specifying the usage context.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines4/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

The description explicitly says 'Use when computing net present value of a series of cash flows' and provides practical usage hints (first cash flow typically negative). However, it does not explicitly state when not to use or mention alternatives.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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