HP 10bII

Calculating Internal Rate of Return
1. Press QED, store number of periods per year in P/YR.
2. Enter the cash flows using Œ) and (Н).
3. Press Бе.
When you calculate IRR/YR, you get the annual nominal rate that gives
an NPV of zero.
The following example uses the cash flows that were entered in the
previous example.
More than one IRR/YR can exist. If you get the No Solution message see
Appendix B (page 129).
Example. If the seller of the contract in the previous example wants
$28,000 and you accept that price, what is your yicld? This is an IRR/YR
calculation that requires a slight modification to the currently stored cash
flows.
10,000
7 19 21 23 25
IRR/YR =?
-28,000
Keys: Display: Description:
qoe) 28,000.00 Changes initial cash flow
бєз
12.49
Calculates
annual
nominal yield.
More examples that use NPV and IRR/YR calculations are given in
chapter 8, “Additional Examples.”
6: Cash Flow Calculations 83