Though I is a financial calculation variable, it is also

used by arithmetic and function operations in the COMP

Mode.

A Calculation Formulas

u NPV

CF

1

CF

2

CF

3

NPV = CF

0

 +           +            +            +  

(1+ i) (1+ i)

2

(1+ i)

3

CF

n

I %

  +

i = 

(1+ i)

n

100

n

: natural number up to 79

u NFV

 NFV = NPV   (1 + i )

n

u IRR

IRR

 is calculated using Newton's Method.

CF

1

CF

2

CF

3

CF

n

0 = CF

0

 +           +            +            +   +

(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.

u PBP

PBP   =

{

0 .................................. (CF

0

 > 0) 

NPV

n   

n

(Other than 

...

NPV

n

+1

   NPV

n

those above) 

n

NPV

CF

k

n

 =  

k

 = 0

(1 + i)

k

n

: Smallest positive integer that satisfies the conditions

NPV

n

 < 0, 

NPV

n

+1

 > 0, or 0.

E 54