The cash flows that describe your prospective investment are now in the calculator. Press
repeat value is entered correctly. Press
Now that you have entered the cash flows, store the interest rate and calculate the net present
value and net future value.
Table 8-8 Calculating NPV and NFV
This result shows that if you want a yield of 15% per year, you should pay 27,199.92 for the
contract. Notice that this amount is positive. The net present value is simply the summed (or
netted) value of a series of cash flows when they are discounted to the front of the time line.
(CFn 4 flashes, then
(CFn 5 flashes, then
(CFn 6 flashes, then
(CFn 7 flashes, then
to scroll through the list and verify the cash flows and the
Input fifth cash flow amount and
Input sixth cash flow amount and
Input seventh cash flow amount and
Input eighth cash flow amount and
Store annual interest rate
Calculate net present value of
stored cash flows.
Calculate NFV of stored cash
Cash Flow Calculations