HP 10B - Manual (Page 85)

0 fCFjl CF5
0.00
Enters fifth cash flow.
4|[^ n5 Enters number of
4.00 occurrences.
7500ÎCFJ1 CF 6
7,500.00
Enters sixth cash flow.
0[çEB CF7 Enters seventh cash
0.00 flow.
9|[^ n7 Enters number of
9.00 occurrences.
10000 fcFil CF 8
10 , 000.00
Enters next cash flow.
The cash flows thaï describe your prospective investment arc now in the
calculator. You can press IRCLl 0, followed by IRCLl ÎCFII and IRCLI
BED, repeatedly to view the cash flows and number of times each occurs.
Now that you have entered the cash flows, store the interest rate and
calculate the net present value.
Keys: Display: Description:
ISfi/YRl 15.00
Stores annual interest
rale.
■iNPVl 27,199.92
Calculates net prc,senl
value of stored cash
flows. (See rounding
example on page 58.)
This result shows that if you want a yield of 15% per year, you should pay
$27,199.92 for the contract. Notice that this amount is positive. The net
present value is simply the summed (or netted) value of a series of cash
flows when they arc discounted to the front of the lime line.
82 6: Cash Flow Calculations