Discounted cash flow analysis – HP 15c User Manual

Page 34

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34

Section 1: Using

_ Effectively

34

Keystrokes

Display

´CLEARQ

Clears financial variables.

|F0

Specifies beginning of period
payments.

5

v12*A

60.00

Enters n = 5 × 12.

13

v12÷B

1.08

Enters i = 13/12.

63000

”C

-63,000.00

Enters PV = −63,000.

10000

E

10,000.00

Enters FV = 10,000.

Á¦

1,300.16

Calculates PMT.

If the prices of the computer increases to $70,000, what should the payments be?

Keystrokes

Display

70000

”C

-70,000.00

Enters PV = −70,000.

Á¦

1,457.73

Calculates PMT.

If the payments were increased to $1,500, what would the yield be?

Keystrokes

Display

1500

Á

1,500.00

Enters PMT = 1500.

1.18

Calculates i (monthly).

12

*

14.12

Calculates annual yield.

´U

14.12

Deactivates User mode.

Discounted Cash Flow Analysis

This program performs two kinds of discounted cash flow analysis: net present value (NPV)
and internal rate of return (IRR). It calculates NPV or IRR for up to 24 groups of cash flows.

The cash flows are stored in the two-column matrix C. Matrix C has one row for each group
of cash flows. In each row of C, the first element is the cash flow amount; the second
element is the number of consecutive cash flows having that amount (the number of flows in
that group). The first element of C must be the amount of the initial investment. The cash

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