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.
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 (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.
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 = ____