User Manual

20060301
S\
IRR
IRR
is calculated using Newton’s Method.
In this formula,
NPV
= 0, and the value of
IRR
is equivalent to
i
s
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.
S\
PBP
n
: Smallest positive integer that satisfies the conditions
NPV
n

0,
NPV
n
+1

0, or 0.
15-4-4
Cash Flow
PBP =
NPV
n =

{
0 .................................. (CF0 > 0)
n –
NPV
n
n
k
= 0
NPVn+1 – NPVn
CFk
(1 + i)
k
(Other than those above)
...
0 = CF0 + + + +
....
+
(1+ i )
CF
1
(1+ i )
2
CF2
(1+ i )
3
CF3
(1+ i )
n
CFn
NPV = CF0 + + + +
(1+ i )
CF
1
(1+ i )
2
CF2
(1+ i )
3
CF3
(1+ i )
n
CFn
....
+
i =
100
I %
NFV = NPV × (1 + i )
n
Calculation Formulas
S\
NPV
n
: natural number up to 79
S\
NFV