Computing Cash Flows - Texas Instruments Calculator User Manual

Press # or " to select the cash flow where you want to insert the
1.
new one. For example, to insert a new second cash flow, select
Press & X.
2.
Key in the new cash flow and press !. The new cash flow is
3.
entered at

Computing Cash Flows

The calculator solves for these cash-flow values:
• Net present value (
including inflows (cash received) and outflows (cash paid out). A
positive
NPV
• Net future value (
positive
NFV
• Payback (
PB
investment, disregarding the present value of the cash inflows (time
value of money).
• Discounted payback (
cost of an investment using the present value of the cash inflows
(time value of money).
• Internal rate of return (
present value of the cash flows is equal to 0.
• Modified internal rate of return (
of cash when solving for
Computing NPV, NFV, PB, and DPB
Press ( to display the current discount rate (
1.
Key in a value and press !.
2.
Press # to display the current net present value (
3.
4. To compute the net present value for the series of cash flows
entered, press %.
5. To compute the net future value (
appears.
6. To compute payback (
7. To compute the payback discounted over time (
value appears.
DBP
Cash Flow Worksheet
.
C02
)
is the total present value of all cash flows,
NPV
value indicates a profitable investment.
) is the total future value of all cash flows. A
NFV
value also indicates a profitable investment.
) is the time required to recover the initial cost of an
) is the time required to recover the initial
DPB
IRR
IRR
), press #. The
PB
) is the interest rate at which the net
) considers the reinvestment
MOD
.
), press #. The
NFV
PB
).
I
).
NPV
value
NFV
value appears.
), press #. The
DBP
.
C02
45