HP 15c - Manual (Page 39)

Section 1: Using _ Effectively 39
Since the NPV is negative, the investment does not achieve the desired 9% yield. Calculate
the IRR.
Keystrokes Display
B 8.04 IRR (after about 5 seconds).
The IRR is less than the desired 9% yield.
Example: An investment of $620,000,000 is expected to have an annual income stream for
the next 15 years as shown in the diagram.
What is the expected rate of return?
Keystrokes Display
3 v2 2
´mC 2.00
´>1 2.00
620000000 ” -620,000,000
OC -620,000,000.0
1 OC 1.00
100000000 OC 100,000,000.0
10
OC 10.00
5000000 OC 5,000,000.00
5 OC 5.00
B 10.06 IRR.
´•4 10.0649
´U 10.0649 Deactivates User mode.