0

I am using numpy library for doing simple IRR calculations using the irr function. So for example, if I want to find the IRR of a cash flow, I do the following

In [16]:
   import numpy as np 
   cf = np.array([-100,10,10,100])
   print np.irr(a)

0.0688601791248

But, I am looking for a way to do the NPV for a perpetuity. My cash flow would be -100, 10....

Has anyone done this before

nitin
  • 7,234
  • 11
  • 39
  • 53

1 Answers1

2

PV of a perpetuity is simple:

PV=C/i

Where C = amount of cash flows
      i = effective periodic interest rate or rate of return 
dawg
  • 98,345
  • 23
  • 131
  • 206