Project proposals and cash flows projections

Your project managers have projected the cash flows for each of the proposals.

Project 1 provides higher short term cash flows, but Project 2 becomes more profitable over time.

The cash flow projections for both projects are as follows:

Year	Project 1	Project 2
1	-$1,000 (initial investment)	-$1,000 (initial investment)
2	$200 (cash flow)	$150 (cash flow)
3	$250	$225
4	$300	$300
5	$350	$375
6	$400	$425
7	$450	$500
8	$500	$575
9	$550	$600
10	$600	$625

Note: The projections are provided in thousands. For example, $1,000 = $1,000,000. We will use the smaller denominations to make everything easier to read. This is also commonly done in financial statements with thousands or even millions in order to represent millions or billions.

This exercise is part of the course

Introduction to Financial Concepts in Python

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Exercise instructions

Create a variable cf_project_1 and set it equal to a numpy array of the projected cash flows (as shown in the table) for Project 1.
Repeat the process for Project 2 and set it equal to cf_project_2.
Scale the original values by 1000x, i.e. multiply the original arrays by 1000.

Hands-on interactive exercise

Have a go at this exercise by completing this sample code.

import numpy as np

# Create a numpy array of cash flows for Project 1
cf_project_1 = ____

# Create a numpy array of cash flows for Project 2
cf_project_2 = ____

# Scale the original objects by 1000x
cf_project1 = ____
cf_project2 = ____

Edit and Run Code