Cash Flows
44
Editing Cash Flows
In the cash flow list, you can view and modify the current monetary value of a specific cash
flow, or cash flows. Press
<
or
>
repeatedly to scroll through the list. To modify the
displayed entry, type a new number and press
I
. For example, to change the current
monetary value of the cash flow three,
CF(3)
, in the example in Table 5-2 from
0
to
200
, with
CF(3)=
displayed, press
200
followed by
I
.
You can also modify the number of occurrences of a cash flow in the same manner with
#CF(n)
displayed. Pressing
:j
with a cash flow displayed erases the displayed cash flow.
Pressing
:o
inserts a cash flow into the list before the displayed cash flow.
Note that the values for the number of cash flows occurring for a given year, (
#CF/Yr
)
Investment interest rate, (
Inv. I%
), and safe interest rate (
Safe I%
) can be entered in both the
NPV and IRR menus*. Key in the desired number or rate followed by
I
with the item
displayed. The other items are then calculated internally.
Modified Internal Rate of Return (MIRR) and Financial Management Rate of Return
(FMRR)*
For the cash flow example you entered in Table 5-2, edit the cash flows using the cash flow
amounts and number of occurrences shown in Table 5-5 below. For the initial cash flow,
CF(0)
,
enter
-1,250,000
. In the IRR menu, enter
8%
for investment interest rate, and
5%
as a safe rate.
Verify the number of cash flows per year,
#CF/Yr
, is set to
1
. The results for MIRR and FMRR
are shown in Table 5-6. This example was calculated in Algebraic mode.
Table 5-5
*Does not apply to the HP 20b.
Cash Flow
Number
Cash Flow Amount
Occurrences
1
-300,000.00
1
2
200,000.00
1
3
450,000.00
1
4
-200,000.00
1
5
700,000.00
1
6
300,000.00
1
7
500,000.00
1
