How to calculate NPV

i want to calculate the NPV ( Net Present 开发者_C百科Value ) using PHP.

Below is the detail which i have.

    discount rate : 15%

    Cash Flow Values per Year:

    Year 1: 110000
    Year 2: 122000 
    Year 3: 135200
    Year 4: 149720
    Year 5: 157706
    Year 6: 166091

NPV Formula which i am using.

NPV = sum of all years( (Ci)/(1+r)^i)

i=1,2,3,4,5,...
Ci= Cash Flow for year i
r=rate of discount

Any help.

Thanks In advance

Avinash

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You would calculate the NPV of each year using the following formula: (value) / ((1 + 0.15) ^ (year)) then sum all the results to get your final NPV - where ^ means to the power of.

So for year two it would be: 122000 / ((1.15)^ 2).

At the current point in time the power ^ value would be 0

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This is taken from the work done by TommySzalapski here: https://www.experts-exchange.com/questions/26875482/Finding-NPV-net-present-value-with-PHP.html

The best way to do it is to first create an array of your cash flows. Remember that arrays start at 0, so if there is no cash flow at year 0 then [0] = 0. If there is a cash out lay make this negative.

$cf = array(0, 110000, 122000, 135200, 149720, 157706, 166091 );

Then create variables for your inputs:

$years = 6;
$discountRate = 0.15;

Then you can use TommySzalapski formula

function npv($rate, $values, $year) {
    for ($i=$year;$i>=0;$i-=1) {
        $npv = ($values[$i] + $npv) / (1 + $rate);
    }
    return '$'.number_format($npv,2,'.',' ');
}

so plugin:

$NPV = npv($discountRate, $cf, 6); // You can also use the $years variable here

echo $NPV;

Answer is $445 751.54 which is the same as the NPV formula gives in Excel.