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Update present_value.py #1

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10 changes: 6 additions & 4 deletions financial/present_value.py
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Original file line number Diff line number Diff line change
Expand Up @@ -11,12 +11,14 @@

def present_value(discount_rate: float, cash_flows: list[float]) -> float:
"""
>>> present_value(0.13, [10])
8.85
>>> present_value(0.13, [10, 20.70, -293, 297])
4.69
4.15
>>> present_value(0.07, [-109129.39, 30923.23, 15098.93, 29734,39])
-42739.63
-39943.58
>>> present_value(0.07, [109129.39, 30923.23, 15098.93, 29734,39])
175519.15
164036.59
>>> present_value(-1, [109129.39, 30923.23, 15098.93, 29734,39])
Traceback (most recent call last):
...
Expand All @@ -31,7 +33,7 @@ def present_value(discount_rate: float, cash_flows: list[float]) -> float:
if not cash_flows:
raise ValueError("Cash flows list cannot be empty")
present_value = sum(
cash_flow / ((1 + discount_rate) ** i) for i, cash_flow in enumerate(cash_flows)
cash_flow / ((1 + discount_rate) ** (i+1)) for i, cash_flow in enumerate(cash_flows)
)
return round(present_value, ndigits=2)

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