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
50 Cash Flow Worksheet
Example: Value of a Lease with Uneven Payments
A lease with an uneven payment schedule usually accommodates seasonal or
other anticipated fluctuations in the lessee’s cash position.
A 36-month lease has the following payment schedule and beginning-of-
period payments.
Number of Months Payment Amount
4 $0
8 $5000
3 $0
9 $6000
2 $0
10 $7000
If the required earnings rate is 10% per 12-month period with monthly
compounding:
• What is the present value of these lease payments?
• What even payment amount at the beginning of each month would result
in the same present value?
Because the cash flows are uneven, use the Cash Flow worksheet to
determine the net present value of the lease.
Computing NPV
The cash flows for the first four months are stated as a group of four $0 cash
flows. Because the lease specifies beginning-of-period payments, you must
treat the first cash flow in this group as the initial investment (
CFo) and enter the
remaining three cash flows on the cash flow screens (C01 and F01).
Note: The BGN/END setting in the TVM worksheet does not affect the Cash
Flow worksheet.