CODEWITHSUNDEEP
rfunctionfor-loop
Josh Ortega
Josh Ortega

Reputation: 179

Function based on lists not working as expected

I'm trying build this function that takes two lists and a single input.

What I have so far:

CLV_general <- function(profit, alpha, r){
  CLV = 0
  t = length(profit)
  for (i in 1:length(profit)){
    for (p in profit){m = p}
    for (t in 0:t){T = t}
    for(a in alpha){A = a}
    clv = (m*A)/((1 +r)^T)
    CLV = CLV + clv
   }
 return(CLV)
}

Calling the function is based off:

alpha = c(1, .96, .92, .88, .84, .80)
profits = c(100, 100, 100, 100, 100,100)
CLV_general(profits, alpha, .10)

But returns a value of 270.9475 but it should return of value of:

> (100*1/((1+.10)^0)) + (100*.96/((1+.10)^1)) + (100*.92/((1+.10)^2)) + (100*.88/((1+.10)^3)) + (100*.84/((1+.10)^4)) + (100*.80/((1+.10)^5))
[1] 436.4683

The function is based off of the formula SUM(Mt*At/((1+r)^t) where Mt is each value sequential value in profits above, A is sequential value of alpha above, rate is constant and t is time 0 to length of profits or alpha.

I've been stuck on this for like 5 hours and I'm just missing SOMETHING. Thanks!!!

Upvotes: 2

Views: 23

Answers (1)

Ronak Shah
Ronak Shah

Reputation: 388982

This seems to be a vectorised operation. Try :

CLV_general <- function(profit, alpha, r){
  sum((profit*alpha/((1 + r)^(seq_along(alpha) - 1))))
}

alpha = c(1, .96, .92, .88, .84, .80)
profits = c(100, 100, 100, 100, 100,100)
CLV_general(profits, alpha, .10)
#[1] 436.4683

Upvotes: 1

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