CFALA
Review:
Tips
for
using
the
TI
calculator
2/9/2015
By
David
Cary
9
CFA Society Los Angeles
Uneven cash flows
• To find the PV (or FV) of uneven cash flows,
find the PV (or FV) of each cash flow and add
them together.
• Learn how to use ‘CF’ keys on your calculator
or use the ‘table method’ and waste time!
• Example: Find PV of receiving $100 at the end
of year 1, $200 at the end of year 2, $400 at the
end of year 3 and $600 at the end of year 4,
using 10%, and then add all those up, OR...
…or a series of unequal cash flows;
17
CFA Society Los Angeles
18
PV OF UNEVEN
CASHFLOWS
Key Strokes
Explanation
Display
[ CF ] [ 2nd ] [ CLR WORK ]
Clear CF Registers
CF0 = 0.00000
0 [ Enter ]
Initial Outflow = 0
CF0 = 0.00000
100 [ Enter ]
Enter CF1
C01 = 100.00
200 [ Enter ]
Enter CF2
C02 = 200.00
400 [ Enter ]
Enter CF3
C03 = 400.00
600 [ Enter ]
Enter CF4
C04 = 600.00
[ NPV ] 10 [ Enter ]
Enters Interest Rate
I = 10.000
[ CPT ]
Calculate NPV
NPV = 966.53
(PV in this case)
To get FV, [CE/C]
(display = 966.53234)
[PV]
(enters 966.53234 as PV)
10 [I/Y]
(enters 10% interest)
4 [N]
(enters 4 years)
[CPT] [FV]
(Display = -1,415.10) This is actually a
positive value, if PV is positive, FV is given as negative
CF
0
= 0, CF
1
= 100, CF
2
= 200
CF
3
= 400, CF
4
= 600, I = 10%
With TI-BAII+Pro
After NPV,
,
NFV, [CPT],
NFV = 1,415.10
