Illustrating Multiple IRRs Using Excel and Financial Calculator iPhone Applications

Abstract

In recent years, the capability of handheld computing devices
has developed into a compelling argument for calculator
applications. This article summarizes two calculator
applications for the iPhone, the Texas Instruments BA II Plus
and the Hewlett Packard 10B II. The obvious advantage to
the user for both applications is cost. The BA II Plus app is
$5.99 and the Hewlett Packard 10B II app is 14.99, both
substantially less than the equivalent calculators. The HP app
discussed here, though, substantially extends the base
calculator's capability. We illustrate this capability in an
exposition of the multiple IRR problem in capital budgeting
using Excel, and then using the two calculator applications.
The extended capability of the iPhone applications is equally
applicable to many other exercises in finance and other
disciplines.