Npv
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/// Calculates Net Present Value given a vector of cash flows and a discount rate.
/// cash_flows: Vector of f64 representing cash flows for each period.
/// rate: Discount rate as an f64 (e.g., 0.05 for 5%)
pub fn npv(cash_flows: &[f64], rate: f64) -> f64 {
cash_flows
.iter()
.enumerate()
.map(|(t, &cf)| cf / (1.00 + rate).powi(t as i32))
.sum()
}
// tests
#[cfg(test)]
mod tests {
use super::*;
#[test]
fn test_npv_basic() {
let cash_flows = vec![-1000.0, 300.0, 400.0, -50.0];
let rate = 0.10;
let result = npv(&cash_flows, rate);
// Calculated value ≈ -434.25
assert!((result - (-434.25)).abs() < 0.05); // Allow small margin of error
}
#[test]
fn test_npv_zero_rate() {
let cash_flows = vec![100.0, 200.0, -50.0];
let rate = 0.0;
let result = npv(&cash_flows, rate);
assert!((result - 250.0).abs() < 0.05);
}
#[test]
fn test_npv_empty() {
// For empty cash flows: NPV should be 0
let cash_flows: Vec<f64> = vec![];
let rate = 0.05;
let result = npv(&cash_flows, rate);
assert_eq!(result, 0.0);
}
}