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Appendix G: HP-80 Calculation Formulas
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Discounted Cash Flow Analysis
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PV0
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=
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original investment
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PVk
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=
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cash flow of kth period
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i
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=
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decimal discount rate per period
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NPVk
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=
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net present value at k
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Notes
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Accrued Interest (simple interest)
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n
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=
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total number of days
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i
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=
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decimal interest on annual basis
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D
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=
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discount amount
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Yield
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=
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decimal effective interest on discounted note
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Discounted notes
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Trend Line
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S
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=
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slope
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Y0
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=
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intercept at time zero
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K
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=
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time periods (k = 1, 2, 3, ... )
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Yk
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=
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value at time k
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N
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=
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total number of data points
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