discount - Discount Values

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Function Names

discount

Description

Applies a discounting on a sequence of values (typically annual cashflow figures) using a Working Average Cost of Capital (WACC) value.

Call as: procedure

Restrictions

Indirect parameter passing is disabled

Parameter count

2-3

Parameters

No.TypeDescription
1
io
set values to discount

Set of numerals (blank strings are allowed and recognized as zero) to be discounted using the WACC value

2
input
numeral WACC

Working average Cost of Capital (WACC)

Opt. 3
input
string time base

Accepts following three values: years, semesters, quarters, and months in order to identify wheter the values provided are on an annual, quarterly or monthly base. If quarter or month are chosen, then the compound avarage growth rate will be automatically adjusted to years.

Default value: years

Exceptions

Input set contains values of invalid type (e.g. strings)

Examples

               fcf [ ] = { 100, 150, 200, 250 };
               discount ( fcf[ ] , 0.1);
               echo( fcf[ ] );

Output

{100,135,162,182.25}
Try it yourself: Open LIB_Function_discount.b4p in B4P_Examples.zip. Decompress before use.

See also

irr