HP -18C Owner's Manual page 94

o I
INPUT
I
Enters FLOW(3)
I
INPUT
I
.FLm·l(3)=
#T I t1ES=
15000
I
INPUT
13
Enters FLOW(4).
I
INPUT
1
FLO~1(4)=15,
000
.#TIMES=3
.FLOW(5)=
#T It1ES=
mEl
Displays the
CALC
menu .
11m
I RR::';= 11 .30
Calculates IRR%.
9 _
1\=9.00
Stores the periodic (an-
nual) interest rate.
...
NP\}=6 .. 728.63
Calculates NPV.
Example: An investment with quarterly returns.
You have been
offered an opportunity to invest $20,000. The investment returns
quarterly payments over four years as follows:
Year 1 4 payments of $500
Year 2 4 payments of $1,000
Year 3 4 payments of $2,000
Year 4 4 payments of $3,000
Figure 5·8. An Investment With Quarterly Returns
'" '" '" '"
0
'0
0
'0
0 0
0 0
'0 '0 '0
'0 0 0 0
0
0
0 0
0
0
0 0 0
Initial
flow= - 20,000
92 5: Cash Flow Calculations
w
w w w
0
0 0
'0
0 0
0
0
0 0 0 0