Question: ***All the info has been provided. No graph or data needed. PLEASE use numpy_financial package to write the code.*** Project description: Make a Python
***All the info has been provided. No graph or data needed. PLEASE use " numpy_financial package" to write the code.***
Project description:
Make a Python program that gets the information from the user about a project and prints, whether based on each rule listed below, the project should be accepted or rejected:
NPV rule
IRR rule
Payback Period rule
Here is the information that you should ask the user as input to your program:
What is the amount of initial investment ($)?
(Save this into a variable named CF0)
What is the fixed amount of cash flow generated from the project each year?
(Save this into a variable named CF)
How long does the project generate cash flow (Number of years)?
(Save this into a variable named T)
What is the project cost of capital (Rate in %)?
(Save this into a variable named CC, don't forget to convert it into decimal)
In how many years would you like to have your investment back?
(Save this into a variable named UserPayback)
Here is what you should print for the user:
Based on the NPV rule, should the project defined by the user be accepted or rejected?
Based on the IRR rule, should the project defined by the user be accepted or rejected?
Based on the Payback Period rule, should the project defined by the user be accepted or rejected?
Suggested steps to take:
Save each input (information you get from the user) into a variable.
Use that information to
Calculate the NPV of the project.
Calculate the IRR of the project.
Calculate the Payback Period.
Compare NPV with 0, if NPV > 0 advise the user to accept the project, otherwise decline it.
Compare IRR with the project cost of capital and use the IRR rule to determine whether the user should accept this project.
Compare the payback period of the project with the number of years that the user wants the investment back (user payback) and advise whether the user should accept the project.
Note:
For each section of your code, have a comment (in a markdown cell) that explains what you do in that section. For example, before you start collecting information from the user, make a markdown cell and type: "Getting the information about the project from the user".
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