37
Discounted Cash Flo
w Anal
ysis
Analyz
e unequal cash fl
o
w
s and calculate the net present v
alue
(NPV) and the inter
nal r
ate of retur
n (IRR).
Note:
Use the
TVM solv
er f
or equal and regular cash fl
o
w
analysis (see page 22).
Entering cash fl
o
w
data
T
o
fi
nd NPV and IRR using discounted cash fl
o
w
analysis
, enter
cash fl
o
w
data, one data item at a time
, in the f
ollo
wing f
o
rmat:
Single cash fl
ow
s
Cash fl
o
w
v
alue
J
Repeated cash fl
ow
s
Cash fl
o
w
v
alue
>
frequency v
alue
J
Notes:
•
Bef
ore enter
ing data, press
>
.
b
to clear an
y
pre
viously entered cash fl
o
w
data.
• Press
,
to enter a negativ
e cash fl
o
w
(outfl
o
w).
•
Mak
e sure the calculator is in NORMAL mode
. It is not pos-
sib
le to enter cash fl
o
w
data when listed fi
nancial v
a
riab
les are
sho
wn on the displa
y. Press
s
to e
xit.
•
Y
ou can enter a total of up to 100 cash fl
o
w
and/or statistical
data items
. A single cash fl
o
w
v
alue is counted as one data
item, while a cash fl
o
w
v
alue with an associated frequency
v
alue is counted as tw
o
.
•
F
requency v
alues m
ust be integers betw
een 1 and 999.
•
If y
ou wish to correct a v
alue bef
ore pressing
J
, press
s
to delete the entr
y and enter the correct v
alue
.
Entering cash fl
ow
d
a
ta
Enter cash fl
o
w
data according to the f
ollo
wing cash fl
o
w
dia-
g
ram.
–
$25
,000
$7,000
$9,000
$5,000
$5,000
$8,000
3 Financial FunctionsCurrent.indd 37
06.7.10 8:38:33 PM
