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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.
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.
$25,000
$7K
$9K
$5K
$8K
$11K
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Year