P
OCKET REFERENCE GUIDE — 35
Cash Flow
A real estate investor wishes to purchase
a home for $225,000 and rent it out. He’d
like a return of 9% and expects to sell it
after 5 years for $275,000. He expects
the annual cash flows below. Find the
IRR, NPV & NFV.
Annual Cash Flow
Year 1 $16,000
Year 2 $16,600
Year 3 $16,900
Year 4 $17,200
Year 5 $275,000
STEPS KEYSTROKES DISPLAY
Clear CF s 6 0.00
Set 1 payment
per year 1 s ÷ 1.00
Enter initial investment as
cash outlay 2 2 5 ) s – c
C-0 -225,000.00
Enter 1st CF 1 6 0 0 0 c
C-1 16,000.00
Enter 2nd CF 1 6 6 0 0 c
C-2 16,600.00
(Cont’d)
To Next Page
Loading...
Need help?
General
