Casio FX-7400GII - SOFTWARE VERSION 2-00 User Manual page 201

Investment appraisal can be used to clearly determine whether an investment is realizing
profits that were originally targeted.
NPV
NPV = CF NPV = CF
n
: natural number up to 254
NFV
NFV = NPV (1 + i ) NFV = NPV (1 + i )
IRR
0 = CF 0 = CF
NPV
In this formula, = 0, and the value of
however, that minute fractional values tend to accumulate during the subsequent calculations
performed automatically by the calculator, so
becomes more accurate the closer that
PBP
{ {
0 .................................. ( 0 .................................. (
PBP = PBP =
n – n –
NPV NPV
n
: smallest positive integer that satisfies the conditions
Press (CASH) from the Financial 1 screen to display the following input screen for Cash
Flow.
(CASH)
I
% ........ interest rate
Csh ....... list for cash flow
If you have not yet input data into a list, press
After configuring the parameters, use one of the function menus noted below to perform the
corresponding calculation.
• {NPV} ... {net present value}
• {IRR} ... {internal rate of return}
• {PBP} ... {payback period}
• {NFV} ... {net future value}
• { LIST} ... {inputs data into a list}
• {LIST} ... {specifies a list for data input}
CF CF CF CF
1 1
+ + + +
0 0
(1+ i) (1+ i) (1+ i) (1+ i)
n n
CF CF CF CF
1 1 2 2
+ + + +
0 0
2 2
(1 + i ) (1 + i ) (1 + i ) (1 + i )
IRR
NPV
> 0) > 0)
CF CF
0 0
NPV NPV
n n
... ... (Other than those above) (Other than those above)
– NPV – NPV
n n n n
+1 +1
CF CF
2 2 3 3
+ + + ... + + ... +
2 2 3 3
(1+ i) (1+ i)
CF CF CF CF
3 3
+ + + ... + + ... +
3 3
(1 + i ) (1 + i ) (1 + i ) (1 + i )
i
is equivalent to × 100. It should be noted,
NPV
never actually reaches exactly zero.
approaches to zero.
NPV
n 0,
( LIST) and input data into a list.
7-6
I % I %
CF CF
n n
i = i =
n n
(1+ i) (1+ i)
100 100
n n
n n
n n
CF CF
= =
NPV NPV
n n
+ i + i
(1 (1
k k
= 0 = 0
NPV
n 0, or 0
+1
IRR
k k
k k
) )