41
2.
Enter cash fl
o
w
data.
• Ref
er to page 37 f
or instr
uctions on enter
ing cash fl
o
w
data.
3.
Press
.
<
to begin discounted cash fl
o
w
analysis
.
• If a pre
viously entered cash fl
o
w
v
alue is displa
y
ed, press
s
to e
xit and then press
.
<
.
4.
T
o
fi
nd NPV or IRR, do the f
ollo
wing:
T
o
obtain NPV
:
Enter the interest r
ate (discounted r
ate) into RA
TE(I/Y) and
press
Q
. Mo
v
e
to NET_PV and calculate b
y
pressing
i
and
@
.
T
o
obtain IRR:
Press
@
to calculate IRR (RA
TE(I/Y)).
Note:
If
“Error 5”
is displa
y
ed in step 4, or if y
ou w
ant to fi
nd
another IRR, enter an estimated v
alue into RA
TE(I/Y) and
calculate again in step 4.
Solving f
o
r unequal cash fl
ow
s
Y
our compan
y pa
ys $12,000 f
or a ne
w netw
or
k system, and
e
xpects the f
ollo
wing ann
ual cash fl
o
ws:
$3,000 f
or the fi
rst
y
ear
,
$5,000 f
or the second to f
our
th y
ears
, and $4,000 f
or the fi
fth
y
ear
. At what IRR does the net present v
alue of the cash fl
o
w
s
equal z
ero?
–
$12,000
$3,000
$5,000
$5,000
$5,000
$4,000
1.
Enter cash fl
o
w
data.
Pr
ocedure
K
e
y
operation
Displa
y
Br
ing up the initial dis-
pla
y in NORMAL mode
.
s
000
1
*
1
3 Financial FunctionsCurrent.indd 41
06.7.10 8:38:36 PM
