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CNAIM (version 2.1.4)

present_value_future_risk: Present Value of Future Risk

Description

This function calculates the present value of future risk. See section 5.5 on page 32 in CNAIM (2021).

Usage

present_value_future_risk(pof, cof, r = 0.035)

Arguments

pof

A vector of the probability of failure of the asset over years

cof

The consequence of failure of the asset

r

discount rate

Examples

Run this code
present_value_future_risk(c(0.1, 0.2, 0.5), 100)

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