Sharp EL-9900 operation manual 190

Chapter 11: Financial Features

06 Npv ( Npv (Interest rate, initial investment, list of following col-

lected investment [, frequency list])

Calculates the net present value and evaluates the validity of the investment. You can enter unequal cash flows in the list of following collected investment.

Example

The initial investment is $25,000 planning to achieve the profits each year as shown on the right, Evaluate whether annual revenue of 18% is achieved.

*You can execute the calcula- tion by using a list or a frequency list calculation.

	$9K			$11K
			$8K
$7K
		$5K
1	2	3	4	5
$25,000		Year

The result indicates that annual revenue of 18% cannot be secured.

07 Irr ( Irr (initial investment, list of following collected investment [,

frequency list] [, assumed revenue rate])

Calculates the investment revenue rate where the net present value is 0.

Example

If the investment for the sales plan in the previous example is $28,000, how much is the investment revenue rate?

•12.42 is obtained as the

answer, thus, the investment revenue rate for the above condition is 12.42%.

*In the previous example, revenues following the investment value (input using minus sign) were assumed to be positive. However, when the assumed revenue is set to minus (in other words, more than two inverse symbols), the assumed revenue rate must be entered at the end. Otherwise an error may occur.

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