Cash Flow (IRR, MIRR, NPV)

[fhub]

(05-28-2015 07:56 AM)salvomic Wrote:  An example to test: -80000, -500, 4500 (3 times), 130000
You buy a mansion 80000$, the second year pay 500 (tax...), 3rd-5th year to get 4500 from rent, then sell to 130000$ at 13% of rate of yield preview.
You should get NPV +212.18.
Then try IRR with the same cashflow, the program gives you 13.72% (about the previewed one)

Don't confuse the users of your program with wrong results, Salvo!

I tried to get your 'results' with my TVM/Cashflow program, but no matter how I entered these values, I just couldn't get your NPV or IRR results.
And since I've checked my program (when I wrote it) against ALL examples that I've found in any of the HP financial calculator manuals (and of course they were all correct), I'm sure that there are no bugs in my program.

For your conditions (given above) the results should be NPV=-480.87 and IRR=12.8575%.

But after a short look at the HP12 manual I saw that you've just used an example from there, but instead of 3-times 4500 the cashflows are in fact 4500/5500/4500 - this would give your NPV=212.18 (and an IRR=13.0629%).

And your IRR=13.72% is from the following example (in the manual) with completely different cashflows ...

Franz