blockPresentValue

Calculates the present value of a stream of cash flows

Extends from Interfaces.PartialConverters.InformationProcessing_SO (Information Processing Block).

Information

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The PresentValue component will accumulate a discounted cash flow stream. The discount factor at any time is given by the accumulation function a(t) for a given interest rate, that may be either a constant (rate) or a variable input (u_r).

Acknowledgements

Additional information can be found on Jim Hines' Molecules of Structure website: →Present Value.

See also

TimeValueOfMoney, AccumulationFunction, ForceOfInterest

Parameters

TypeNameDefaultDescription
OutputTypeinitialValue0Initial PV at start time
Raterate0.05Constant discount rate per period (optional)
Structural Parameters
BooleanhasConstantRatefalseIf true the discount rate is a constant parameter
BooleanisCCRtrueIf false the given rate is transformed to a continuously compounding rate

Connectors

TypeNameDefaultDescription
Interfaces.Connectors.RealInputuCash stream input
Interfaces.Connectors.RealInputu_rDiscount rate input

Components

TypeNameDefaultDescription
RealOutputy (from InformationProcessing_SO)Information output signal