Casio CLASSWIZ CG Software User's Manual page 148

1 + iS × PMT − FV × i
log
1 + iS × PMT + PV × i
n =
log 1 + i
1 − β
α = (1 + i × S) × β = 1 + i
i
When S > [Payment Point] is "End"
S =
i =
When calculating I%
i (effective interest rate) is calculated using Newton's Method.
PV + α × PMT + β × FV = 0
I% = is calculated from i using the formulas below:
I% =
Important!
• When inputting both the present value (PV) and future value (FV) for a calculation, either PV or FV
must be positive, while the other (PV or FV) is negative.
• Annual interest rate (I%) calculations are performed using Newton's Method, which produces
approximate values whose precision can be affected by various calculation conditions. Interest
calculation results produced by this application should be used keeping the above in mind, or results
should be confirmed separately.
Cash Flow
This calculator uses the discounted cash flow (DCF) method to perform investment appraisal by totalling cash
flow for a fixed period. This calculator can perform the following four types of investment appraisal.
N PV : Net present value
IRR: Internal rate of return
A cash flow diagram like the one shown below helps to visualize the movement of funds.
With this graph, the initial investment amount is represented by CF
CF , two years later by CF
1
-n
0
When P/Y = C/Y = 1
I%
100
When P/Y = C/Y = 1
i × 100
CF
2
CF
1
CF
0
, and so on.
2
I % = 0 PV = - PMT × n + FV n > 0
PMT = - PV + FV
FV = - PMT × n + PV n > 0
n = - PV + FV
When S > [Payment Point] is "Beginning"
When P/Y ≠ 1 and/or C/Y ≠ 1
When P/Y ≠ 1 and/or C/Y ≠ 1
N FV : Net future value
PBP: Payback period
CF
5
CF CF
3
CF
4
. The cash flow one year later is shown by
0
148
n > 0
n
PMT
1
C/Y
I%
P/Y
1 + − 1
100 × C/Y
P/Y
1 + i − 1 × C/Y × 100
C/Y
CF
7
6