Calculating internal rate of return, Example – HP 10B User Manual

Page 86

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Calculating Internal Rate of Return

1. Press BICLEAR ALU, store number of periods per year in

P/YR.

2. Enter the cash flows using (CF^ and (Nfl.

3. Press II

1

шгдп

When you calculate

¡RR/YR^

you get llic annual nominal rate that gives

an

NPV

of /его.

The following example uses the cash flows that were entered in the

previous example.

More than one

IRR/YR

can exist. If you get the no SoLution message see

Appendbc В (page 127).

Example.

If the seller of the contract in the previous example wants

$28,000 and you accept that price, what is your yield? This is an

IRR/YR

calculation that requires a slight modification to the currently stored cash

flows.

6: Cash Flow Calculations $3

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