Two project with different lifespans
The board of the company has decided to go a different direction, involving slightly shorter term projects and lower initial investments.
Your project managers have come up with two new ideas, and projected the cash flows for each of the proposals.
Project 1 has a lifespan of 8 years, but Project 2 only has a lifespan of 7 years. Project 1 requires an initial investment of $700,000, but Project 2 only requires $400,000.
The cash flow projections for both projects are as follows:
| Year | Project 1 | Project 2 |
|---|---|---|
| 1 | -$700 (initial investment) | -$400 (initial investment) |
| 2 | $100 (cash flow) | $50 (cash flow) |
| 3 | $150 | $100 |
| 4 | $200 | $150 |
| 5 | $250 | $200 |
| 6 | $300 | $250 |
| 7 | $350 | $300 |
| 8 | $400 | N / A |
Cet exercice fait partie du cours
Introduction to Financial Concepts in Python
Instructions
- Create a variable
cf_project_1and set it equal to anumpyarray of the projected cash flows for Project 1. - Repeat the process for Project 2, setting it equal to
cf_project_2. - Scale the original values by 1000x, i.e. multiply the original arrays by 1000.
Exercice interactif pratique
Essayez cet exercice en complétant cet exemple de 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 = ____