HP 10bII - Page 82

Keys:
Display:
Description:
GOV 9.00 Enters number of
occurrences.
00000@ 10,000.00 Enters next cash flow.
The
cash
flows
that
describe
your
prospective
investment
are
now
in
the
calculator.
You
can
press
GENO,
followed
by
PEND
and
DOW,
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:
@®@®
15.00
Stores
annual
interest
rate.
CORP) 27,199.92 Calculates net present
value of stored cash
flows. (Sec rounding
example on page 59.)
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
are
discounted
to
thc
front
of
the
time
linc.
NPV = 27,199.92
saa
1%
=
15%
per
year
4,415.91
|
лб
|
7,500.00
13
579
nB
5
V
9
21
23
25
82 6:Cash Flow Calculations