Mistake in the example

Hello everyone

I noticed something in the examples in the CodeBook. Namely in the example "Discounted_Cash_Flow_Analsis".

In the section "Discounted Cash Flow" the function .npv() from NumPy is used. According to the documentation, the discount rate does not have to be given as a percentage, but as a decimal number (0.05 an not 5%)

In the example in the CodeBook, however, the discount rate (WACC %) is used as a percentage.

Perhaps this could be corrected.

Best Answer

  • aramyan.h
    aramyan.h admin
    Answer ✓

    Hi @michael.mauchle ,


    Thank you very much for the feedback. We have reviewed the example and will update it accordingly. Will let you know here once done.


    Best regards,

    Haykaz

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