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Cash flow example – HP 30b Business Professional Calculator User Manual

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Cash Flows

38

To erase a cash flow list, with any cash flow displayed press

:x

. The number of cash

flows in the list is displayed on the bottom line, along with Cash Flow=. At this prompt, press

I

. You will be asked to confirm your choice. Either press

I

to confirm the

reset, or

O

to cancel.

Table 5-1 lists the keys used for cash flow problems. For a cash flow example, see Table 5-2.

Cash Flow Example

After an initial investment of 80,000.00, CF (0), you expect returns over the next five years as
follows:

Given this information, calculate the total of the cash flows and the internal rate of return (IRR)
of the investment. Calculate net present value (NPV) and net future value (NFV), assuming an
annual investment interest rate of 10.5%. See Figure 1 for the cash flow diagram and
Table 5-2 for how to enter the cash flows. The example is calculated with RPN as the active
operating mode.

Table 5-1 Cash Flow Keys

Key

Description

C

Opens the cash flow list.

I

Inputs new values for variables in the cash flow list, the Net Present Value
(NPV) menu, and the Internal Rate of Return (IRR) menu.

><

Scrolls up and down.

o

Inserts cash flows into a cash flow list.

j

Removes cash flows from a cash flow list.

RP

Opens the Internal Rate of Return (IRR) and Net Present Value (NPV) menus.

Cash Flow

Number

Cash Flow Amount

Occurrences

1

5,000.00

1

2

4,500.00

1

3

0.00

1

4

4,000.00

1

5

5,000.00

5

6

115,000.00

1