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http://www.financeassignment.blogspot.comSoftware Introduction
Topic for the assignment relating to subject Introduction to Business financeis “Find any computer program to calculate NPV and IRR and also learn touse it.” So the topic asks about any sort of software which is made for calculating NPV and IRR. There are so many software made for calculating NPV and IRR, we can also calculate NPV and IRR by using the interface of MS-EXCEL, but other software provide us greater ease and supportabilityfor using formulas.So the Software, I have used for Calculating Net Present Value (NPV) andInternal Rate of Return (IRR) is “SolveIT!, The financial Calculator”. TheGraphical User Interface for the software can be seen in figure shown below.
Solve!IT, The Financial Calculator
There are six categories in this software, which are:
1.Financial calculators
2.
Depreciation calculators
3.
Loan calculators4.Schedules – Cash Flows
5.
General calculators6.Advisors
 
These are briefly described one by one:
1.
Financial calculators
It includes some of the basic finance formulas which are Compound &Simple Interest Calculator, Return on Investment Calculator, EquivalentRate Calculator,
Internal Rate of Return Calculator (IRR)
,
Net PresentValue Calculator(NPV)
, Payment Required Calculator, and Present Valueof an Amount Calculator 
.
2.Depreciation calculators
It includes formulas relating to depreciation. These are Declining BalanceDepreciation Calculator, MACRS Calculator, Straight Line DepreciationCalculator, and Sum of Years Depreciation Calculator.
3.Loan calculators
It includes formulas relating to Loan calculation. These are AcceleratedPayment Calculator, Affordable House, Balloon Payment Calculator, BridgeLoan Calculator, Loan Calculator, Remaining Balance Calculator.
4.Schedules – Cash Flows
It includes formulas relating to Schedules – Cash Flows calculation. Theseare Annuity Schedule, Future Value (FV) Schedule, Present Value (PV) of aSeries Schedule, Rental Analysis Schedule, and Flexible AmortizationSchedule. 
5.
General Calculators
It includes formulas relating to General calculation. These are BondCalculator, Budget Calculator, Economic Ordering Quantity Calculator,Gross Profit Calculator, Net worth Calculator, Purchasing Power Calculator,and Weighted Average Calculator.
6. Advisors
It includes formulas relating to calculations which are necessary for Advisors and through these formulas Advisors take decisions. These areBreak Even Advisor, Lease vs Buy Advisor, Loan Comparison Advisor, andRefinance Advisor.
Calculating Net Present Value (NPV)
One method of evaluating the feasibility of a capital expenditure decision isto use the Net Present Value (NPV) method of evaluation. The present valueof the cash flows (both positive and negative values can be entered) aredetermined using the MINIMUM rate of return (Discount Rate) on aninvestment that you will accept. The calculated result, if positive, tells youthat you are exceeding your minimum requirements and a negative valuetells you that you are not achieving your objective.
 
 
Enter the initial amount. Since it is assumed that this will be the initialinvestment which is a cash outflow, it should be entered as a negative value.Enter the Total Periods and Initial Date and set the payment frequency(Payment Period).
 
The cash flow input fields will be updated or created according to the inputsyou enter. Enter each projected cash flow.
Usage Note
:
When entering cash flows, the arrow keys will move the cell pointer fromcellto cell. Additionally, if the menu choice {Preferences}{Tabkey moves cell to cell in grid...} is checked, then [Tab] will move the cell pointer left to right and [Shift][Tab] will move it from right to left.Otherwise, if it is not checked, [Tab] will move thefocusto the next controli.e. the 'Calc' button.
Solved Problem from Final Paper of B.Com (H) P-III
XYZ firm is planning to invest in manufacturing plant that costs purchase anew manufacturing plan that costs Rs.777000/- and its future cash flow isRs.103300/- for year one, Rs.198400/- for year two, Rs.238000/- for year three, Rs.263000/- for year four and Rs.296000/- for year five. Evaluate theinvestment proposal by applying, NPV and IRR methods of capital budgeting when the interest rate is 8%, required payback period is 5 year and RRR is 10%?The problem is solved in Figure:
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