Financial Calculations Worksheet Page 18
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3019 - 4
Investment Appraisal
u u u u u PBP
n
when NPV > 0 (when investment can be recovered).
PBP is the value of
Press 3 (CASH) from the initial screen 1 to display the following input screen for
investment appraisal.
I
% ................... interest rate
Csh ................. list for cash flow
•{NPV}/{IRR}/{PBP}/{NFV} ... {net present value}/{internal rate of return}/
{pay back period}/{net future value}
•{LIST} ... {specifies a list for cash flow}
Example
An investment of $86,000 in machinery projects the annual
revenues shown in the table below (all revenues realized at the
end of the fiscal year). What is the net profit or loss of this
investment if the useful service life of the machine is six years,
the resale value after six years is $14,000, and the capital cost
is 11%?
Year
Revenues
1
–5,000
2
42,000
3
31,000
4
24,000
5
23,000
6
12,000 + 14,000
On the Main Menu, select the LIST icon to enter the LIST Mode and perform the
following key operations.
e(List 2)
-igaaaw
-faaaw
ecaaaw
dbaaaw
ceaaaw
cdaaaw
bcaaa+beaaaw
Return to the Main Menu by pressing m. Select the TVM icon to enter the
Financial Mode, and then press 3 (CASH).
338
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