VICTOR TECHNOLOGY
22
RCL PV
372,217.58
Displays the remaining principle after 60 months of
payments
RCL n
60.00
Displays the number of payments amortized (60
months)
12 b AMORT
-22,152.81
Displays the amount of interest paid in the next 12
months of payments (after the initial 60 months
already amortized)
x ↔ y
-6,625.59
Displays the amount of principle paid in the next 12
months of payments (after the initial 60 months
already amortized)
Chapter 3: Other Financial Calculations
NPV (Net Present Value)
b NPV (net present value) represents the value of a series of future cash
flows discounted at a specified rate of return to reflect the present value.
¾ When NPV is positive, financial value increases.
¾ When NPV is 0, financial value stays the same.
¾ When NPV is negative, financial value decreases.
Therefore, the greater the value of NPV, the greater the increase in financial
value.
To find NPV, add the initial deposit (a negative cash flow) to present value of
future cash flow. (Here, i will describe the rate of return, and NPV describes
the result of the investment.)
Two keys not yet discussed in this manual are required to perform NPV
calculations. The CFo key is used to store the initial cash flow. When
touched, the contents of the x-register are stored in R
0
. The CFj key is used
to store additional cash flows. When touched, the contents of the x-register are
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