Cash Flow Worksheet 49
Computing NPV, NFV, PB, and DPB
Use an interest rate per period (I) of 20%.
Answers: NPV is $7,266.44. NFV is $21,697.47. PB is 2.00. DPB is 2.60.
Computing IRR and MOD
Answer: IRR is 52.71%. MOD is 35.12%.
Example: Value of a Lease with Uneven Payments
A lease with an uneven payment schedule usually accommodates
seasonal or other anticipated fluctuations in the lessee’s cash position.
A 36-month lease has the following payment schedule and beginning-of-
period payments.
To Press Display
Access interest rate variable (
I= 0.00
Enter interest rate per period. 20 !
I=
20.00
Compute net present value. # %
NPV=
7,266.44
Compute net future value. # %
NFV=
21,697.47
Compute payback. # %
PB=
2.00
Compute discounted payback. # %
DPB=
2.60
To Press Display
Access
IRR. )
IRR= 0.00
Compute internal rate of return. #
IRR=
52.71
Select reinvestment rate (RI) #
RI= 0.00
Enter reinvestment rate. 20 !
RI= 20.0
Compute modified internal rate of return. # %
MOD=
35.12
Number of Months Payment Amount
4$0
8 $5000
3$0
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