Computing npv, nfv, pb, and dpb, Computing irr and mod, Example: value of a lease with uneven payments – Texas Instruments Calculator User Manual
Page 53
Cash Flow Worksheet
49
Computing NPV, NFV, PB, and DPB
Use an interest rate per period (
I
) of 20%.
Answers:
NPV
is $7,266.44.
NFV
is $21,697.47.
PB
is 2.00.
DPB
is 2.60.
Computing IRR and MOD
Answer: IRR
is 52.71%.
MOD
is 35.12%.
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.
To
Press
Display
Access interest rate variable
(
I=
0.00
Enter interest rate per period.
20
!
I=
20.00
Compute net present value.
# %
NPV=
7,266.44
Compute net future value.
# %
NFV=
21,697.47
Compute payback.
# %
PB=
2.00
Compute discounted payback.
# %
DPB=
2.60
To
Press
Display
Access
IRR
.
)
IRR=
0.00
Compute internal rate of return.
#
IRR=
52.71
Select reinvestment rate (
RI
)
#
RI=
0.00
Enter reinvestment rate.
20
!
RI=
20.0
Compute modified internal rate of return.
# %
MOD=
35.12
Number of Months
Payment Amount
4
$0
8
$5000
3
$0