User Manual

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 !1(TRCE) to turn on trace and read calculation
results along the graph.
Press J 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.
CF0
CF1
CF2
CF3
CF4
CF5
CF6
CF7
CF0
CF1
CF2
CF3
CF4
CF5
CF6
CF7