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Chapter 9: Financial Features
06 Npv (
Npv (Interest rate, initial investment, list of following collected
investment [, frequency list])
Calculates the net present value and evaluates the validity of the
investment. You can enter unequal cash flows in the list of following
collected investment.
Example
The initial investment is $25,000
planning to achieve the profits
each year as shown on the
right, Evaluate whether annual
revenue of 18% is achieved.
* You can execute the calculation
by using a list or a frequency
list calculation.
07 Irr (
Irr (initial investment, list of following collected investment [,
frequency list] [, assumed revenue rate])
Calculates the investment revenue rate where the net present
value is 0.
Example
If the investment for the sales
plan in the previous example
is $28,000, how much is the
investment revenue rate?
• 12.42 is obtained as the
answer, thus, the investment revenue rate for the above condition
is 12.42%.
* In the previous example, revenues following the investment value
(input using minus sign) were assumed to be positive. However,
when the assumed revenue is set to minus (in other words, more
than two inverse symbols), the assumed revenue rate must be
entered at the end. Otherwise an error may occur.
192
$9K
$8K
$7K
$5K
1
2
3
4
Year
$25,000
$11K
5
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