U
SER
’
S
G
UIDE
— 9
(Cont’d)
Press Display or Calculation
1
IRR%*
2
Net Present Value (NPV)**
3
Net Future Value (NFV)
4
Desired Interest Rate (entered prior to
calculating)***
*IRR: The rate of return at which the discounted future cash flows
equal the initial cash outlay (C-0). An IRR greater than the desired
rate of return is financially attractive (the higher, the better).
**NPV: Another tool to analyze cash flow scenarios. A positive NPV
indicates that an investment is attractive (again, the higher, the better).
NPV is computed by adding the initial investment (C-0), a negative
cash outlay, to the present value of the estimated future cash flows.
***Interest: When in Canadian Mode, if an interest rate has been
stored in the Interest function, the calculated Effective Interest
percent will be used for calculating IRR if no desired rate of
return is entered. If a desired rate of return is entered directly
(e.g.,
1 0 R
) the entered rate is used (it is not converted to the
Effective Interest Rate Percentage).
Note: If there is no initial investment/cash outlay, enter “0” into the
first cash flow register (C-0).
s R
NPV/NFV — If you wish to skip the IRR% calculation
display (see above), press
s R
to calculate NPV.
Second press calculates NFV.
s 6
Clear Cash Flows (Clear CF) — Deletes all cash flows.
Use this before you begin a new cash flow example.
U.S. Keys (Used in U.S. Mode)
Note: Calculator must be set to U.S. Mode. See page 11.
s ˆ
Annual Percentage Rate (APR) — Calculates APR
(for fixed-rate loans only) based on the entry of points
and/or non-recurring loan fees paid at initiation. It also
calculates total finance charges, monthly mortgage
insurance, and PIMI payment, based on the entry of
mortgage insurance via the
s 9
keys.
s 9
U.S. Mortgage Insurance — Used to enter
Mortgage Insurance as percentage or dollar amount.
s p
Interest-Only Payment — Enters or calculates
interest-only payments.
s q
Used for interest-only qualifying (U.S. mode only).
s Q
Used for interest-only qualifying (U.S. mode only).
