Example: Value Of A Lease With Uneven Payments - Texas Instruments Calculator User Manual

Computing NPV, NFV, PB, and DPB
Use an interest rate per period (
To
Access interest rate variable
Enter interest rate per period.
Compute net present value.
Compute net future value.
Compute payback.
Compute discounted payback. # %
Answers:
NPV
Computing IRR and MOD
To
Access .
IRR
Compute internal rate of return.
Select reinvestment rate (
Enter reinvestment rate.
Compute modified internal rate of return. # %
is 52.71%.
Answer: IRR

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.
Number of Months
4
8
3
Cash Flow Worksheet
is $7,266.44.
NFV
)
RI
is 35.12%.
MOD
) of 20%.
I
Press
(
!
20
# %
# %
# %
is $21,697.47.
Press
)
#
#
20
Payment Amount
$0
$5000
$0
Display
I=
I=
NPV=
7,266.44
NFV=
21,697.47
PB=
DPB=
is 2.00.
PB DPB
Display
IRR=
IRR=
RI=
!
RI=
MOD=
0.00

20.00



2.00

2.60
is 2.60.
0.00

52.71
0.00
20.0

35.12
49