Solver Corporate Finance: Given cash flow amounts for 5 years, calculate the PV

Source code of 'Corporate Finance: Given cash flow amounts for 5 years, calculate the PV'

This Solver (Corporate Finance: Given cash flow amounts for 5 years, calculate the PV) was created by by Shruti_Mishra(0)

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About Shruti_Mishra: I am a maths graduate from India and am currently persuing masters in Operations Research.

==section input
Find Present Value (PV) of given cash flows amounts for 5 years (Payments at end of year; positive for inflow, negative for outflow). Cash flow for year 1 = $ *[input p1=1000], year 2 = $ *[input p2=1000], year 3 = $ *[input p3=1000], year 4 = $ *[input p4=1000], year 5 = $ *[input p5=1000].  
Interest Rate (applicable) = *[input r=5]%.

==section solution
perl

print "To find the <A HREF='lesson_PV.lesson'>present value</A> (PV) of the cash flow, we need to discount the yearly payments (or receipts) by the <A HREF='interest_rate.lesson'>interest rate</A> applicable to the risk associated with the cash flow. This can be learned in the lesson on <A HREF='PV_rate2use.lesson'>Calculating PV - Which interest rate to use</A>.
 
The formula for calculating the <A HREF='lesson_PV.lesson'>PV</A> is
 
 <center>
 {{{PV = sum( Ci/(1+r)^i, i=1, T )}}}
 </center>

Thus in this case the <A HREF='lesson_PV.lesson'>PV</A> becomes
 
 <center>
 {{{PV = $p1/(1+$r/100) + $p2/(1+$r/100)^2 + $p3/(1+$r/100)^3 + $p4/(1+$r/100)^4 + $p5/(1+$r/100)^5 }}}
 </center>
 
Thus PV = ";
$pv= $p1/(1+$r/100) + $p2/(1+$r/100)**2 + $p3/(1+$r/100)**3 + $p4/(1+$r/100)**4 + $p5/(1+$r/100)**5;
print "$pv.";
$pvp = int($pv);
==section output
pvp

==section check
p1=1000 p2=1000 p3=1000 p4=1000 p5=1000 r=5 pvp=4329