Press i to turn off trace press i again to return to

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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 2-4-1 Cash Flow (Investment Appraisal) 2-4 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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