6. (11.4) (I/Y) 11.4 Enter the annual interest rate
of 11.4%.
7. (FV) -13,986.35 Computes the future value of
a $2,000 beginning-of-the-
period annuity earning 11.4
percent annual interest for 5
years.
J. Calculating the net present value (NPV) of a series of equal or uneven cash flows using
the cash flow (CFj) register.
Example: Jane thinks if she invests $80,000 by buying property today, she can get $15,000 in rent
from it for each of the next twenty years (the rent will be paid quarterly). If she wants a rate of return
of 12% (with quarterly discounting) on her investment, what is the net present value of this project?
Keystrokes Display Description
Clear all memory.
1. (OS) (C ALL) 0.00 Clears Time-Value-of-Money
worksheet.
2. (4) (OS) (P/YR) (C) 0.00 Sets the frequency of
compounding to four times
per year and clears the
register.
3. (80000) (+/-) (CFj) -80,000.00 Inputs initial cash outflow.
4. (1) (OS) (Nj) 1.00 Stores the frequency with
which the initial outflow of
$80,000 occurs.
5. (15000) (÷) (4) (=) (CFj) 3,750.00 Stores the quarterly cash
inflow.
6. (4) (x) (20) (=) (OS) (Nj) 80.00 Stores the number of
quarterly rent payments to be
received.
7. (12) (I/Y) 12.00 Stores the annual interest
rate.
8. (OS) (NPV) 33,252.86 Calculates the net present
value of the investment.
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