Adding new columns
In a perfect world, you could be 100% certain that you will receive all of your cash flows. But, since these are predictions about the future, there is always a chance that someone won't be able to pay! You decide to run some analysis about a worst case scenario where you only receive half of your expected cash flow. To save the worst case scenario for later analysis, you decide to add it as a new column to the data frame!
cash$half_cash <- cash$cash_flow * .5
cash
company cash_flow year half_cash
1 A 1000 1 500
2 A 4000 3 2000
3 A 550 4 275
4 B 1500 1 750
5 B 1100 2 550
6 B 750 4 375
7 B 6000 5 3000
And that's it! Creating new columns in your data frame is as simple as assigning the new information to data_frame$new_column. Often, the newly created column is some transformation of existing columns, so the $ operator really comes in handy here!
This exercise is part of the course
Introduction to R for Finance
Exercise instructions
- Create a new worst case scenario where you only receive 25% of your expected cash flow, add it to the data frame as
quarter_cash. - What if it took twice as long (in terms of
year) to receive your money? Add a new columndouble_yearwith this scenario.
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# Quarter cash flow scenario
cash$quarter_cash <-
# Double year scenario