It should be noted however that minute fractional

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Unformatted text preview: CF3 CFn CF1 + + +…+ (1+ i ) (1+ i )2 (1+ i )3 (1+ i )n In this formula, NPV = 0, and the value of IRR is equivalent to i × 100. It should be noted, however, that minute fractional values tend to accumulate during the subsequent calculations performed automatically by the calculator, so NPV never actually reaches exactly zero. IRR becomes more accurate the closer that NPV approaches to zero. 20010101 2-4-2 Cash Flow (Investment Appraisal) u PBP PBP is the value of n when NPV > 0 (when investment can be recovered). • Press 3(CASH) from the Financial 1 screen to display the following input screen for Cash Flow. 3(CASH) I% ............................... interest rate (%) Csh .............................. list for cash flow If you have not yet input data into a list, press 5(' LIST) and input data into a list. After configuring the parameters, press one of the function keys noted below to perform the corresponding calculation. • 1(NPV) ......... Net present value • 2(IRR) .......... Int...
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This note was uploaded on 03/17/2013 for the course EE 410 taught by Professor Ertuğruleriş during the Spring '13 term at Istanbul Kültür Üniversitesi.

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