Cash Flows
52
Table 5-1 Cash Flow Keys
Key Description
I
Inputs current values to variables in the cash flow list
as well as the Net Present Value (NPV) and Internal
Rate of Return (IRR) menus.
><
Scrolls up and down.
o
Inserts cash flows into a cash flow list.
j
Removes cash flows from a cash flow list.
RP
Opens internal rate of return (IRR) and Net Present
Value (NPV) menus.
After an initial investment of $80,000.00, you expect returns over the next
five years as follows: cash flow 1, $5,000.00, cash flow 2, $4,500.00, cash
flow 3, $0.00, cash flow 4, $4,000.00, cash flow 5, $5,000.00, 5 times, cash
flow 6, $115,000.00.
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
5-1 and Table 5-2. The example below is shown with RPN as the active operating
mode.
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