Owner's Manual

Table Of Contents
When a sequence of cash flows has two or more sign changes:
- At least one solution exists.
- As many solutions can exist as there are sign changes.
When more than one solution exists, the calculator displays the one
closest to zero. Because the displayed solution has no financial meaning,
you should use caution in making investment decisions based on an IRR
computed for a cash-flow stream with more than one sign change.
The time line reflects a sequence of cash flows with three sign changes,
indicating that one, two, or three IRR solutions can exist.
When solving complex cash-flow problems, the calculator might not find ,
DPB, IRR, even if a solution exists. In this case, the calculator displays
Error 7 (iteration limit exceeded).
Example: Solving for Unequal Cash Flows
These examples show you how to enter and edit unequal cash-flow data to
calculate:
Net present value (NPV)
Internal rate of return (IRR)
A company pays $7,000 for a new machine, plans a 20% annual return on the
investment, and expects these annual cash flows over the next six years:
Cash Flow Worksheet 47