HP HP-18C User Manual

Example: Calculating IRR% and NPV of an investment. Part 1.
An investor makes an initial investment of $80,000, and expects re-
turns over the next five years as illustrated in figure 5-6.
Figure 5-6. Cash Flows for an Investment
115,000
5,000
4,500
5,500
2 3 4
5
Initial
flow= - 80,000
Calculate the total of the cash flows and the internal rate of return of
the investment. In addition, calculate the net present value and net
future value, assuming an annual interest rate of 10.5%.
Part 2. Assuming the same interest rate, calculate NPV if cash flow
#4 is reduced from $4,000 to $1,000.
Starting from the MAIN menu:
Keys:
_IDIII *
• 1 CLEAR ALL I
..
80000
@JIINPuTI
Display:
HlITIAL FLO~~
• IN IT=
HlI T=-8e., €lee, €Ie
.FLO~H 1) =
#T I t1ES=
Description:
Displays the cash flow
menu .
Clears
the list.
Enters
the initial cash
flow.
• If you want to preserve the current number list, skip the next step (pressing .1 CLEAR ALL I ).
Instead, name the list (refer to pag e 111), a nd then press " IIIB.
88 5: Cash Flow Calculations

HP HP-18C Specifications

General

Brand	HP
Model	HP-18C
Category	PDA
Language	English