calculate_npv
Calculate Net Present Value from monthly cash flows to evaluate petroleum project profitability using discounted cash flow analysis.
Instructions
Calculate Net Present Value from monthly cash flows.
NPV = sum(CF_t / (1 + r/12)^t) for t = 0, 1, 2, ...
Args: cash_flows: Monthly cash flows ($). First element is typically negative (capex). discount_rate: Annual discount rate. Default 0.10.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| cash_flows | Yes | ||
| discount_rate | No |
Output Schema
| Name | Required | Description | Default |
|---|---|---|---|
| result | Yes |