Owner's Manual
Table Of Contents
- Overview of Calculator Operations
- Turning On the Calculator
- Turning Off the Calculator
- Selecting 2nd Functions
- Reading the Display
- Setting Calculator Formats
- Resetting the Calculator
- Clearing Calculator Entries and Memories
- Correcting Entry Errors
- Math Operations
- Memory Operations
- Calculations Using Constants
- Last Answer Feature
- Using Worksheets: Tools for Financial Solutions
- Time-Value-of-Money and Amortization Worksheets
- TVM and Amortization Worksheet Variables
- Entering Cash Inflows and Outflows
- Generating an Amortization Schedule
- Example: Computing Basic Loan Interest
- Examples: Computing Basic Loan Payments
- Examples: Computing Value in Savings
- Example: Computing Present Value in Annuities
- Example: Computing Perpetual Annuities
- Example: Computing Present Value of Variable Cash Flows
- Example: Computing Present Value of a Lease With Residual Value
- Example: Computing Other Monthly Payments
- Example: Saving With Monthly Deposits
- Example: Computing Amount to Borrow and Down Payment
- Example: Computing Regular Deposits for a Specified Future Amount
- Example: Computing Payments and Generating an Amortization Schedule
- Example: Computing Payment, Interest, and Loan Balance After a Specified Payment
- Cash Flow Worksheet
- Bond Worksheet
- Depreciation Worksheet
- Statistics Worksheet
- Other Worksheets
- APPENDIX - Reference Information
- General Information
46 Cash Flow Worksheet
Computing Cash Flows
The calculator solves for these cash-flow values:
• Net present value (NPV) is the total
present
value of all cash flows,
including inflows (cash received) and outflows (cash paid out). A positive
NPV value indicates a profitable investment.
• Internal rate of return (IRR) is the interest rate at which the net present
value of the cash flows is equal to 0.
Computing NPV
1. Press ( to display the current discount rate (
I).
2. Key in a value and press !.
3. Press # to display the current net present value (NPV).
4. To compute the net present value for the series of cash flows entered,
press C.
Computing IRR
1. Press ). The
IRR variable and current value are displayed (based on the
current cash-flow values).
2. To compute the internal rate of return, press C. The calculator displays
the IRR value.
When solving for IRR, the calculator performs a series of complex, iterative
calculations that can take seconds or even minutes to complete. The number of
possible IRR solutions depends on the number of sign changes in your cash-
flow sequence.
• When a sequence of cash flows has no sign changes, no IRR solution
exists. The calculator displays Error 5.
• When a sequence of cash flows has only one sign change, only one IRR
solution exists, which the calculator displays.