Discounted Cash Flow Analysis; Net Present Value; Internal Rate Of Return; Calendar - HP 12c User Manual

Discounted Cash Flow Analysis

Net Present Value

NPV
CF
=
NPV

Internal Rate of Return

CF
IRR
k
∑
=
0 CF
=
j 1

Calendar

Actual Day Basis

∆DYS = f(DT
where
f(DT) = 365 (yyyy) + 31 (mm – 1) + dd + INTG (z/4) – x
and
for mm ≤ 2
x = 0
z = (yyyy) – 1
for mm > 2
x = INTG (0.4mm + 2.3)
z = (yyyy)
INTG = Integer portion.
Note: Additional tests are performed in order to ensure that the century (but
not millennium) years are not considered leap years.

30/360 Day Basis

DAYS = f(DT
f(DT) = 360 (yyyy) + 30mm + z
for f(DT
1
if dd
if dd
for f(DT
2
if dd
if dd
2
if dd
2
File name: hp 12c_user's guide_English_HDPMBF12E44
Printered Date: 2005/7/29
= net present value of a discounted cash flow.
= cash flow at period j.
j
CF CF
+ 1 + 2 +
CF
0
+ 1 + 2
1 ( i ) 1 ( i )
n = number of cash flows
= cash flow at period j.
j
= Internal Rate of Return
⎡ − ⎤
n
⎡
− +
1 1 ( IRR ) j
⋅ ⎢ ⎥ ⋅
1 (
⎢
j
IRR
⎢ ⎥ ⎣
⎣ ⎦
) – f(DT )
2 1
) – f(DT )
2 1
)
= 31 then z = 30
1
≠
31 then z = dd
1 1
)
= 31 and dd = 30 or 31 then z = 30
2 1
= 31 and dd < 30 then z = dd
1
< 31 then z = dd
2
Appendix D: Formulas Used
CF
+ n
...
+ n
1 ( i )
−
∑ ⎤
nq
+ +
<
IRR ) CF
q j
⎥
0
⎦
2
Page: 187 of 209
Dimension: 14.8 cm x 21 cm
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