Finance Problem Help

This is closer to being on the right track... Rate is off by a factor of ~10. Maybe assuming 7.5% risk free, rather than 0.75% that the fed is offering.

risk_free_rate = 0.0075
future_value = qd['net_profit'] * 0.2 * 0.9
factor = qd['days_operational']
daily_rate = (1.0+risk_free_rate)**(1.0/365.0) - 1
values = []
rates = []
for idx in xrange(len(future_value)):
fv = future_value[idx]
rate = factor[idx]*daily_rate
rates.append(rate)
values.append(fv * (1.0+rate)**(-idx))
print sum(values)

5pm bump. Too bad no one here knows anything about finance.

we do but we're not gonna do your fucking homework for you, kid

>>1832929
This. Go earn your degree just like everyone else.

>>1832929
I'm out of school. I'm a dev. I'm trying to learn some shit. Not a lot of finance resources offering free help.

Shouldn't be hard to point out what formula to use.

>>1832944
Net present value discounts future cash flows to the present. It doesn't work the other way (pushing past profits forward).

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>>1832948
It's 10 years of expected. My model numbers match up with other answers to this problem (modeloff.com), but I don't know how they came to this valuation (or how tf I would).

Using fed rate as risk free is off by a factor of 10, which makes it look like they used around 7.5%. Do you just pull a number out of your ass for that? My calculations could just be fucked up though or I'm fucking up the basis daily rate thing.

Oh shit, I was using the days per quarter that the plant was operating. Not the actual days per quarter. I'll see how this changes it.

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Well, in case any of you scum fucks want to learn something. The solution was to use 10% as the (discount) rate, and not do the reduction by 0.9 on the profits. It's working now.

I'm still off a little, but it's by less than half a percent in both cases.