%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
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