(12C) Financial Management Rate of Return - FMRR

[Joe_H]

Running this on the cashflow used for MIRR:

CF0 -€105,222
CF1 +€8,792
CF2 +€9,700
CF3 +€10,480
CF4 -€2,472
CF5 +€12,093
CF6 +€182,188

with i=i*=10%

IRR calculated as 15.0% and MIRR as 14.25% & FMRR now as 14.31%. Trying now on a significantly longer and more complex cashflow:

CF0 -€25,000 * 1
CF1 +€10,000 * 1
CF2 -€7,000 * 1
CF3 +€5,000 * 8
CF4 -€4,000 * 12
CF5 +€35,000 * 2
CF6 +€29,000 * 2

Safe rate i=3.75%; re-investment rate i*=8.35%; N=26

IRR = 11.08%; MIRR = 7.87%; and finally........FMRR = 8.47%.

I have checked these results against the HP-30b and also Excel for some simpler ones. It's surprisingly hard to do right in Excel and I kept making mistakes

The HP-30b ran it instantly and the HP-12C ran it in less than a second. However, the HP-12C platinum took 26 seconds!! I didn't realise it was such a poor performer compared to its little brother.

Overall, this was an interesting algorithm that took me a while to debug as I was doing it on the 12C and 12CP at the same time and didn't realise that the 12C disables the stack lift for a STO to TVM register but the 12CP doesn't (on another thread here). While the 12CP is simpler to understand the program is 7 steps shorter for 12C with the disabled stack lift.

As before, the CF is limited to 7 entries including 0th period. 10 would be about acceptable and I will set it up for that on the 12CP.