HP 10B - Manual (Page 83)

To replace a cash flow, enter the new cash flow and press BiSTOl
followed by the cash flow (register) number.
To replace the number of limes a particular cash flow occurs, IRCLI the
cash flow whose number of occurrences will change. Then, enter (he
number of times it occurs and press BfRIl.
To replace both the cash flow and number of times it occurs, enter the
new cash now, press BiSTOl followed by the cash flow (register) number.
Then enter the number of times it occurs and press
I
Since cash flows cannot be deleted or inserted, use BICLEAR ALU to start
over.
Calculating Net Present Value
The net present value (NPV) function is used to discount all cash flows to
the front of the time line using an annual nominal interest rate that you
supply.
G!IjU These steps describe how to calculate
1. Press BiCLEAR^Lll. store number of periods per year in P/YR,
2. Enter the cash flows using tcfil and (N]].
3. Store the annual nominal intcre.st rate in I/YR and press BiNPVl.
Example: A Discounted Contract, Uneven Cash Flows.
You
have an opportunity to purchase a contract with the following cash flows:
End Of Month Amount
4 $ 5,000.00
9 $ 5,000.00
10 S 5,000.00
15 $ 7,500.00
25 $10,000.00
How much should you pay for the contract if you wish to yield a yearly
rate of 15% on your investment?
80 6: Cash Flow Calculations