Casio FX-9750GII-SC User Guide - Page 200

Cash Flow (Investment Appraisal

Page 200 highlights

After configuring the parameters, use one of the function menus noted below to perform the corresponding calculation. • {n} ... {number of compound periods} • {I%} ... {annual interest rate} • {PV} ... {present value} (Loan: loan amount; Savings: balance) • {PMT} ... {payment} (Loan: installment; Savings: deposit) • {FV} ... {future value} (Loan: unpaid balance; Savings: principal plus interest) • {AMT} ... {amortization screen} • An error (Ma ERROR) occurs if parameters are not configured correctly. Use the following function menus to maneuver between calculation result screens. • {REPT} ... {parameter input screen} • {AMT} ... {amortization screen} • {GRPH} ... {draws graph} After drawing a graph, you can press (TRCE) to turn on trace and read calculation results along the graph. Press ) to return to the parameter input screen. 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) • Payback period (PBP) A cash flow diagram like the one shown below helps to visualize the movement of funds. CF2 CF3 CF4 CF5 CF6 CF7 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. 7-5

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7-5
After configuring the parameters, use one of the function menus noted below to perform the
corresponding calculation.
• {
n
} … {number of compound periods}
• {
I%
} … {annual interest rate}
• {
PV
} … {present value} (Loan: loan amount; Savings: balance)
• {
PMT
} … {payment} (Loan: installment; Savings: deposit)
• {
FV
} … {future value} (Loan: unpaid balance; Savings: principal plus interest)
• {
AMT
} … {amortization screen}
• An error (Ma ERROR) occurs if parameters are not configured correctly.
Use the following function menus to maneuver between calculation result screens.
• {
REPT
} … {parameter input screen}
• {
AMT
} … {amortization screen}
• {
GRPH
} … {draws graph}
After drawing a graph, you can press
(TRCE) to turn on trace and read calculation
results along the graph.
Press
to return to the parameter input screen.
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
)
• Payback period (
PBP
)
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
0
. The cash flow one year
later is shown by
CF
1
, two years later by
CF
2
, and so on.
CF
0
CF
1
CF
2
CF
3
CF
4
CF
5
CF
6
CF
7
CF
0
CF
1
CF
2
CF
3
CF
4
CF
5
CF
6
CF
7