User Manual
Table Of Contents
- Important Information
- Overview of Calculator Operations
- Turning On the Calculator
- Turning Off the Calculator
- Selecting 2nd Functions
- Reading the Display
- Setting Calculator Formats
- Resetting the Calculator
- Clearing Calculator Entries and Memories
- Correcting Entry Errors
- Math Operations
- Memory Operations
- Calculations Using Constants
- Last Answer Feature
- Using Worksheets: Tools for Financial Solutions
- Time-Value-of-Money and Amortization Worksheets
- TVM and Amortization Worksheet Variables
- Using the TVM and Amortization Variables
- Resetting the TVM and Amortization Worksheet Variables
- Clearing the Unused Variable
- Entering Positive and Negative Values for Outflows and Inflows
- Entering Values for I/Y, P/Y, and C/Y
- Specifying Payments Due With Annuities
- Updating P1 and P2
- Different Values for BAL and FV
- Entering, Recalling, and Computing TVM Values
- Using [xP/Y] to Calculate a Value for N
- Entering Cash Inflows and Outflows
- Generating an Amortization Schedule
- Example: Computing Basic Loan Interest
- Examples: Computing Basic Loan Payments
- Examples: Computing Value in Savings
- Example: Computing Present Value in Annuities
- Example: Computing Perpetual Annuities
- Example: Computing Present Value of Variable Cash Flows
- Example: Computing Present Value of a Lease With Residual Value
- Example: Computing Other Monthly Payments
- Example: Saving With Monthly Deposits
- Example: Computing Amount to Borrow and Down Payment
- Example: Computing Regular Deposits for a Specified Future Amount
- Example: Computing Payments and Generating an Amortization Schedule
- Example: Computing Payment, Interest, and Loan Balance After a Specified Payment
- TVM and Amortization Worksheet Variables
- Cash Flow Worksheet
- Bond Worksheet
- Depreciation Worksheet
- Statistics Worksheet
- Other Worksheets
- APPENDIX - Reference Information
46 Cash Flow Worksheet
When more than one solution exists, the calculator displays the one
closest to zero. Because the displayed solution has no financial
meaning, you should use caution in making investment decisions
based on an
IRR computed for a cash-flow stream with more than
one sign change.
The time line reflects a sequence of cash flows with three sign
changes, indicating that one, two, or three
IRR solutions can exist.
• When solving complex cash-flow problems, the calculator might not
find
IRR, even if a solution exists. In this case, the calculator displays
Error 7 (iteration limit exceeded).
Example: Solving for Unequal Cash Flows
These examples show you how to enter and edit unequal cash-flow data
to calculate:
• Net present value (
NPV)
• Internal rate of return (
IRR)
A company pays $7,000 for a new machine, plans a 20% annual return on
the investment, and expects these annual cash flows over the next six
years:
As the time line shows, the cash flows are a combination of equal and
unequal values. As an outflow, the initial cash flow (
CFo) appears as a
negative value.
Year Cash Flow Number Cash Flow Estimate
Purchase
CFo
-$7,000
1
C01
3,000
2–5
C02
5,000 each year
6
C03
4,000