Unformatted text preview: H) .... Draws graph After drawing a graph, you can press 1 (TRACE) to turn on trace and read calculation
results along the graph. Press i to turn off trace.
Press i again to return to the parameter input screen. 20010101 241
Cash Flow (Investment Appraisal) 24 Cash Flow (Investment Appraisal)
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.
• Net present value (NPV )
• Net future value (NFV )
• Internal rate of return (IRR )
• Pay back period (PBP )
A cash flow diagram like the one shown below helps to visualize the movement of funds. CF2 CF3 CF4 CF5 CF7
CF6 CF1
CF0
With this graph, the initial investment amount is represented by CF0. The cash flow one year
later is shown by CF1 , two years later by CF2 , and so on.
Investment appraisal can be used to clearly determine whether an investment is realizing
profits that were originally targeted. uNPV NPV = CF0 + CF2
CF3
CFn
CF1
+
+
+…+
(1 + i ) (1 + i )2 (1 + i )3
(1 + i )n i= I%
100 n: natural number up to 254 uNFV NFV = NPV × (1 + i )n uIRR 0 = CF0 + CF2...
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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.
 Spring '13
 ertuğruleriş

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