Casio fx-9860GII SD - Compound Interest Calculations; Net Present Value (NPV)

CASIO
E-15
Select Compound Interest.
K((TVM)
(CMPD)
Configure settings for the various conditions.
I% = 5.5, PV = 20,000, PMT = –500, FV =0,P/Y = 12, C/Y =12
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Determine the number of payments
n.
(
n)
Result:
n = 44.28829713  45
Example 2: Net Present Value (NPV) Method
By investing $10 million in a piece of machinery, a company expects
to earn annual profits as shown in the table below (all profit values
calculated at the end of each fiscal year).
If the machine has a useful life of six years, a trade-in value of $1
million, and expected capital costs of 10%, how much is the net
present value (the total profit or loss of this investment)?
Cash Data
x1 – $10,000,000 Initial investment (One machine, $10 million)
x2 – $1,000,000
x3 $5,000,000
x4 $4,500,000
x5 $3,000,000
x6 $2,500,000
x7 $1,500,000 + $1,000,000 To add trade-in value of machine.
I%
Investment cost (annual interest) 10%
Select Cash Flow.
K((TVM)
(CASH)
Configure settings for the various conditions.
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Input the condition values into List 1.
(LIST)
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