Cash flow (investment appraisal), Cash flow (investment appraisal) -5 – Casio FX-9750GII User Manual

Page 200

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7-5

After configuring the parameters, use one of the function menus noted below to perform the
corresponding calculation.

• {n} … {number of compound periods}

• {I%} … {annual interest rate}

• {PV} … {present value} (Loan: loan amount; Savings: balance)

• {PMT} … {payment} (Loan: installment; Savings: deposit)

• {FV} … {future value} (Loan: unpaid balance; Savings: principal plus interest)

• {AMT} … {amortization screen}

• An error (Ma ERROR) occurs if parameters are not configured correctly.

Use the following function menus to maneuver between calculation result screens.

• {REPT} … {parameter input screen}

• {AMT} … {amortization screen}

• {GRPH} … {draws graph}

After drawing a graph, you can press

results along the graph.

Press

) to return to the parameter input screen.

4. Cash Flow (Investment Appraisal)

This calculator uses the discounted cash flow (DCF) method to perform investment appraisal
by totalling cash flow for a fixed period. This calculator can perform the following four types of
investment appraisal.

• Net present value (

NPV

)

• Net future value (

NFV

)

• Internal rate of return (

IRR

)

• Payback period (

PBP

)

A cash flow diagram like the one shown below helps to visualize the movement of funds.

With this graph, the initial investment amount is represented by

CF

0

. The cash flow one year

later is shown by

CF

1

, two years later by

CF

2

, and so on.

CF

0

CF

1

CF

2

CF

3

CF

4

CF

5

CF

6

CF

7

CF

0

CF

1

CF

2

CF

3

CF

4

CF

5

CF

6

CF

7

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