HP HP-15C - Page 46

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Section 1: Using [SOLVE| Effectively
Since the NPV is negative, the investment does not achieve the
desired 9% yield. Calculate the IRR.
Keystrokes Display
8.04 IRR (after about 8
minutes).
The IRR is less than the desired 9% yield.
Example: An investment of $620,000,000 is expected to have an
annual income stream for the next 15 years as shown in the
diagram.
100,000,000
1 1
1 ,
L i
•^ <J,W\J, WW
1 1 J 1
1 I I I
10 11 12 13 14 15
-620,000,000
What is the expected rate of return?
Keystrokes
3 | ENTER | 2
1 oooooooo fsfoi
lO[sTo1
5000000
Display
2
2.00
2.00
-620,000,000
-620,000,000.0
1.00
100,000,000.0
10.00
5,000,000.00
5.00
10.06
10.0649
10.0649
IRR.
Deactivates User mode.