40
Pr
ocedure
K
e
y
operation
Displa
y
Change the fi
rst cash
fl o
w
v
alue from –25,000
to –30,000.
,
30000
J
CF
D—=
-3000000
Change the frequency
of 5000 from 2 to 1.
i
i
i
i
i
i
i
1
J
CF
N3=
100
Add a ne
w data set
(6000) immediately
bef
ore 5000.
.
e
6000
J
CF
D3=
600000
T
o
confi
r
m
the corrections
, press
.
z
to jump to the fi
rst
data item and press
i
to bro
wse through each data item.
V
ariab
les used in discounted cash fl
o
w
anal
ysis
V
ariab
le
Description
Default v
alue
RA
TE (I/Y)
Inter
nal r
ate of retur
n (IRR)
0
NET_PV
Net present v
alue (NPV)
—
•
The v
a
riab
le RA
TE (I/Y) is shared b
y
the v
a
riab
le I/Y
. NET_PV
is f
or calculation only and has no def
ault v
alue
.
•
The BGN/END setting is not a
v
ailab
le f
or discounted cash fl
ow
analysis
.
NPV and IRR
The calculator solv
es the f
ollo
wing cash fl
o
w
v
alues:
Net present v
alue (NPV):
The total present v
alue of all cash fl
o
w
s
, including cash paid out
(outfl
o
ws) and cash receiv
ed (infl
o
ws).
A profi
tab
le in
v
estment is
indicated b
y
a positiv
e NPV v
alue
.
Internal rate of return (IRR):
The interest r
ate that giv
es a net present v
alue of z
ero
.
Basic operations
Ref
er to page 19 f
or basic v
a
riab
le oper
ations
.
1.
Press
s
to clear the displa
y.
• Mak
e sure the calculator is in NORMAL mode
.
3 Financial FunctionsCurrent.indd 40
06.7.10 8:38:35 PM
