HP 10BII User Manual page 129

More About Calculations
IRR/YR Calculations
7KH FDOFXODWRU GHWHUPLQHV ,55<5 IRU D VHW RI FDVK IORZV XVLQJ
PDWKHPDWLFDO IRUPXODV WKDW VHDUFK IRU WKH DQVZHU 7KH SURFHVV
ILQGV D VROXWLRQ E\ HVWLPDWLQJ DQ DQVZHU DQG WKHQ XVLQJ WKDW
HVWLPDWH WR GR DQRWKHU FDOFXODWLRQ 7KLV LV FDOOHG DQ LWHUDWLYH
SURFHVV
,Q PRVW FDVHV WKH FDOFXODWRU ILQGV WKH GHVLUHG DQVZHU VLQFH WKHUH
LV XVXDOO\ RQO\ RQH VROXWLRQ WR WKH FDOFXODWLRQ +RZHYHU
FDOFXODWLQJ ,55<5 IRU FHUWDLQ VHWV RI FDVK IORZV LV PRUH FRPSOH[
7KHUH PD\ EH PRUH WKDQ RQH RU QR PDWKHPDWLFDO VROXWLRQ WR
WKH SUREOHP ,Q WKHVH FDVHV WKH FDOFXODWRU GLVSOD\V D PHVVDJH WR
KHOS \RX LQWHUSUHW ZKDW KDV KDSSHQHG
Possible Outcomes of Calculating IRR/YR
7KHVH DUH WKH SRVVLEOH RXWFRPHV RI DQ ,55<5 FDOFXODWLRQ
7KH FDOFXODWRU GLVSOD\V D SRVLWLYH DQVZHU 7KLV LV WKH RQO\
Case 1.
SRVLWLYH DQVZHU +RZHYHU RQH RU PRUH QHJDWLYH DQVZHUV PD\ H[LVW
7KH FDOFXODWRU ILQGV D QHJDWLYH DQVZHU EXW D VLQJOH SRVLWLYH
Case 2.
DQVZHU DOVR H[LVWV ,W GLVSOD\V
DQVZHU SUHVV
DQVZHU \RX PXVW LQSXW D JXHVV 5HIHU WR ´(QWHULQJ D *XHVV IRU
,55<5µ EHORZ  7KHUH PLJKW DOVR EH DGGLWLRQDO QHJDWLYH DQVZHUV
7KH FDOFXODWRU GLVSOD\V D QHJDWLYH DQVZHU DQG QR PHVVDJH
Case 3.
7KLV LV WKH RQO\ DQVZHU
7KH FDOFXODWRU GLVSOD\V WKH PHVVDJH
Case 4.
LQGLFDWHV WKDW WKH FDOFXODWLRQ LV YHU\ FRPSOH[ ,W PLJKW LQYROYH PRUH
WKDQ RQH SRVLWLYH RU QHJDWLYH DQVZHU RU WKHUH PD\ EH QR VROXWLRQ
7R FRQWLQXH WKH FDOFXODWLRQ \RX PXVW VWRUH D JXHVV VHH EHORZ 
Pos Irr Also
WR FOHDU WKH PHVVDJH 7R VHDUFK IRU WKH SRVLWLYH
 7R VHH WKH QHJDWLYH
 7KLV
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B: More About Calculations 129
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