The
most useful Functions: ( Blank
JScript calculator)
1. NPV, Net Present Value of
various payments at various times. Also called Discounted Cash Flow (DCF)
2. NFV, Net Future Value of
various payments at various times. Invested Cash Flow (ICF)
3. ROR, Internal Rate of Return
(IRR) of a series of + and - payments
4. NOP, Breakeven and Number of
Periods functions
5. EPC, The Equivalent Period Cost
( first cost - PV of salvage) converted to equivalent A. )
For other than straight forward applications
care must be exercised to use appropiate + and - values for costs and salvage.
The EPC Equivalent Period Cost
function calculates the effect of the Salvage Value on the capital
recovery costs by deducting the present value of the Salvage Value form the net
first cost of an asset.
ROR
can also be used to find equivalent period investment yields when the face
value of an instrument is deferred to time n.
The traditional functions:
The basic Single Payment Functions:
1. P/F , Single Payment Present
Value.
2. F/P, Single Payment Capital
Accuulating.
(inverse
of P/F, the single payment Present Value Function)
3. cfpvf , single payment
continuous flow Present Value.
4. cfcaf , single payment
continuous flow Capital accumulating.
The two functions below determine the amount of each payment A of an
equal payment series are:
1. A/P, the Capital Recovery Function,
or CRF
2. A/F, the Sinking Fund Function, or
SFF
The functions to determine the Present or Future Value given A the
equal payment amount of a series:
1. P/A, the Present value of a series A
(inverse of the capital recovery function)
2. F/A, the Future value of a series A (the
inverse of the sinking fund function)
In some cases it is expedient to consider the
compounding to be CONTINUOUS, rather
than discrete. Information on continuous compounding functions: CCFNS
End to date: 051105, ams