%OP%PL70
%OP%PS1
%OP%TM4
%OP%HM0
%OP%FM0
%OP%BM6
%OP%LM8
%OP%DE8+66+6=80
%CO:A,11,67%PROGRAMME "INVEST" 15.2.1989
This programme offers different means of assessing the
profitability of an investment made at time 0 and recovered with
incomes gathered in subsequent years.
Option 1 clears the memory and reads the number of years(nys)
Option 2 reads or modifies the value of the initial investment and
the stream of subsequent incomes and outlays. The initial
investment(i.e. an outlay) is read as a negative value in year 0
(more exactly, the beginning of year 1). In subsequent years (from
1 to nys), incomes and outlays are assumed to occur at the end of
the year; in a given year, incomes and outlays are automatically
summed up, whereby a positive balance should in general be
achieved if the investment is ever to be recovered!
Option 3 computes the net present value at time 0 of all payments
with the help of a threshold interest rate;a positive result means
profit, a negative a loss.
Option 4 computes the internal rate of return of the investment,
i.e. the interest rate that results in a zero net present value.
Option 5 compares at the end of the last year the profitability of
this investment with the alternative of having invested this
money at the current market rate. The gross profit is first
computed, as the future worth %H1%at the market rate%H1% of the full
stream of payments, and compared to the simple market profit.
Option 6 shows a profile in %PC% and in absolute values of the
investment over time. The initial debt decreases as the revenues
flow in over the years. A "high profile" means late recovery and
hence higher risks! Accrued interests at the internal rate of
return are taken into account.
%H1%Notes%H1%
The investment and its stream of revenues can be viewed at any
time by going to Option 2 and pressing ENTER
Author Bruno Pellaud
Santisstrasse 22
8123 Ebmatingen, Switzerland
%CO:B,11,56%%CO:C,11,45%%CO:D,11,34%%CO:E,11,23%%CO:F,11,12%