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s c
Frequency (Freq)
—The second function of this key
labels a cash flow that is repeated consecutively, or
grouped (e.g., if a cash flow is repeated three times
in a row, first enter the cash flow value into the
c
key, then enter the frequency, or number of occur-
rences (
3 s c
).
Note: to use the Frequency function, a cash flow must repeat
itself
consecutively
. If it occurs more than once out of order, or
is not consecutive, you must enter it separately, just like other
cash flows (do not use the Frequency function).
R
Internal Rate of Return
— This multi-function key
calculates, upon consecutive presses:
Press Display or Calculation
1
IRR%*
2
Net Present Value (NPV)**
3
Net Future Value (NFV)
4
Desired Interest Rate (entered prior to cal-
culating, or stored in
ˆ
key)
*IRR: The rate of return at which the discounted future cash flows
equal the initial cash outlay (C-0). An IRR greater than the desired
rate of return is financially attractive (the higher, the better).
**NPV: Another tool to analyze cash flow scenarios. A positive
NPV indicates that an investment is attractive (again, the higher,
the better).
NPV is computed by adding the initial investment (C-0), a nega-
tive cash outlay, to the present value of the estimated future cash
flows.
Note: If there is no initial investment/cash outlay, enter “0” into the
first cash flow register (C-0).
s R
NPV/NFV
— If you wish to skip the IRR% calcula-
tion display (see above), press
s R
to calculate
NPV. Second press calculates NFV.
s 6
Clear Cash Flows (Clear CF)
— Deletes all cash
flows. Use this before you begin a new cash flow
example.
