Victor Technology V12 - Manual (Page 23)

V I C T O R T E C H N O L O G Y
23
stored in R
1
. If used again in the same cash flow problem, the contents of the
x-register are stored in first R
2
, then R
3
, R
4
, and so on.
Example
You want to buy a yacht for $23,000 and rent it to a skipper for a share of tour
revenue. You expect cash flows of the initial cost ($23,000), ($5000) in the first
year for repairs, +$10,000 in the second year from tours, +$15,000 in the third
year, $17,000 in the fourth year, and then you expect to sell the yacht in the
fifth year for $19,000. Your expected rate of return is 15%.
ENTRIES DISPLAY
b REG
0.00
Clears the x register
23000 CHS r CF
0
-23,000.00
Stores the initial cash outflow to buy the yacht
5000 CHS r CF
j
-5,000.00
Stores the first year cash flow
10000 r CF
j
10,000.00
Stores the second year cash flow
15000 r CF
j
15,000.00
Stores the third year cash flow
17000 r CF
j
17,000.00
Stores the fourth year cash flow
19000 r CF
j
19,000.00
Stores the final cash inflow at time of sale
RCL n .
5.00
Displays the number of cash flows entered after
the initial
15 i .
15.00
Stores the expected rate of return
b NPV 9,242.52
Since NPV is positive, this investment would be attractive.
Grouped Cash Flows
It is possible to calculate NPV for 80 unique cash flows using the CFj key. In
addition, the number of cash flows included in a calculation can go beyond 80