HP 17bII+ User Manual

Page 102

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102 7: Cash Flow Calculations

File name : English-M02-1-040308(Print).doc Print data : 2004/3/9

Example: Calculating IRR and NPV of an Investment. An investor
makes an initial investment of $80,000, and expects returns over the
next five years as illustrated below.

$ _ 80,000

1

2

3

4

5

5,000

4,500

5,500

4,000

115,000

(Initial flow)

Calculate the total of the cash flows and the internal rate of return of the
investment. In addition, calculate the net present value and net future
value, assuming an annual interest rate of 10.5%.

Start the problem with an empty cash-flow list. Since the cash flows are
ungrouped, each one occurs just once. Turn off the #TIMES prompt to
make cash-flow entry faster.

Keys: Display:

Description:

Displays current cash-flow list
and CFLO menu keys.

@c

or



Clears current list or gets a
new one. The empty list
prompts for its initial cash
flow.







Briefly shows the status of

, then returns to the

list. With prompting off, all
cash flows are assumed to
occur just once.

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