Not long ago, before the now-popular personal computers, the discrete compounding interest factors found in the appendix of college textbooks or other reference manuals were used to calculate compound interest rate, discount rate, net present value, future value, fixed payment, etc. These tabulated factors are pre-calculated from formulas, and reduce the time and complexity required for manual calculation. However, experience shows that this is far from a simple process. First, the number of terms and the available interest rate must be found in the tables to determine the conversion factor. Not all combinations are listed in the table, and conversion factors must then be approximated by interpolation or extrapolation, further complicating the process and leading to inaccuracies.
Hand-held financial calculators were the next step to simplify the complexities of financial calculations. However, the function keys designated for cash flows, number of periods, NPV, interest rate, FV, loan payment, etc., are not necessarily intuitively obvious to operate, and can be confusing at first. Other drawbacks of using hand-held calculators are limited screen output, limited functionality, results can not be stored, etc.
The introduction and availability of personal computers has revolutionized many fields, including the financial industry. The Precision Financial Calculator now provides numerous advantages, including ease of data entry, storage, retrieval, and display of results for reports and presentations. The dynamic loan payment analysis tables provide loan officers a wide spectrum of dynamic scenarios analysis. The graphics presentations provide visual aid to your financial analyses. With Precision, you can do multiple DCFROR analyses simultaneously for multiple sets of cash flow imported from an Excel spreadsheet file. Precision makes it even easy to compare scenarios by providing charting and tabular listing.
Since we've posted the software on the Internet, the feedback has been quite encouraging. Many helpful suggestions and functionality enhancements have been incorporated in version updates, making the Precision Financial Calculator a solid and practical tool for your professional financial applications.