94
7: Cash Flow Calculations
File name : English-M02-1-040308(Print).doc Print data : 2004/3/9
1
2
3
4
5
6
7
8
9
$
_1
0
0
$
_1
0
0
$
_1
0
0
$
_1
0
0
$
_1
0
0
$
_2
0
0
$
_2
0
0
$
_2
0
0
Figure 7-2. Grouped Cash Flows
After an initial payment of $100, the investor pays $100 at the end of
periods 1 through 5, and $200 at the end of periods 6 through 8. The
investment returns $1,950 at the end of period 9. For every cash flow
you enter, the calculator prompts you to indicate how many times
(
#TIMES
) it occurs.
Creating a Cash-Flow List
To use CFLO, be sure your cash flows are occurring at regular intervals
and at the
end
of each period.
*
If a period is skipped, enter zero for its
cash flow. If there are any
grouped
(consecutive and equal) cash flows,
the
#TIMES
prompting makes entering the data easier.
*
If the cash flows occur at the beginning of each period, then combine the first
flow with the initial flow (which can increase or decrease the flow), and move
each cash flow up one period. (Remember: a payment made at the beginning
of period 2 is equivalent to the same payment made at the end of period 1,
and so on. Refer to pages 64-92.)
