Exercise

# Discounting cash flows

You can use numpy's net present value function `numpy.npv(rate, values)`

to calculate the net present value of a series of cash flows. You can create these cash flows by using a `numpy.array([...])`

of values.

Compute the NPV of the same cash flows from the following project, but assuming different discount rates:

Year | Cash Flow |
---|---|

1 | $100 |

2 | $100 |

3 | $100 |

4 | $100 |

5 | $100 |

Instructions

**100 XP**

- Calculate the net present value of the investment with
`cash_flows`

at a discount rate of 3% per year, and assign it to`investment_1`

. - Repeat the process with a discount rate of 5% per year, and assign it to
`investment_2`

. - Repeat the process with a discount rate of 7% per year, and assign it to
`investment_3`

.