HP 30b Professional, 20b Consultant Financial manual Analyzing Cash Flows, Mirr

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Analyzing Cash Flows

The various functions used to analyze cash flows are located in the NPV Pand IRR R

menus. If you press Ror Pbefore entering cash flows, you will be redirected to the

cash flow menu to enter values into the cash flow list. The menu maps for the IRR and NPV menus are shown in Figure 2. Table 5-3describes the items within these menus. The results shown in Table 5-4are based on the values entered in the cash flows as shown in Table 5-2.

Table 5-3 Analyzing Cash Flows

Item

Description

 

 

Inv. l%

Investment or discount rate. Enter the investment rate or discount rate for the cash

 

flow followed by I. This rate must be entered in both the NPV and IRR

 

menus.*

 

 

NetPV

Net Present Value. Shows the value of the cash flows at the time of the initial cash

 

flow, discounting the future cash flows by the value set for Inv. I%.

 

 

NetFV

Net Future Value. Shows the value of the cash flows at the time of the last cash flow,

 

discounting the earlier cash flows by the value set for Inv. I%.

 

 

NetUS

Net Uniform Series. Shows the per-period payment of a regular, periodic cash flow

 

of equivalent present value to the cash flow list.

 

 

Payback

Payback. Shows the number of periods for the investment to return value.

 

 

Discounted Payback

Discounted Payback. Shows the number of periods required for the investment to

 

return value if the cash flows are discounted using the value set in Inv. I%.

Total

#CF/Yr

IRR%

Safe I%*

MIRR*

The sum of all the cash flows, equivalent to NPV if Inv. I% is 0.

The number of cash flows per year. The default is 1.

Internal Rate of Return. This is the discount rate that returns a Net Present Value for the entered cash flows.

Safe Interest Rate. Enter the safe investment rate followed by I.

Modified Internal Rate of Return. Used primarily when there is more than one sign change in a series of cash flows to evaluate the overall profitability of an investment.

FMRR*

Financial Management Rate of Return. Used primarily when there is more than one

 

sign change in a series of cash flows to evaluate the overall profitability of an

 

investment.

 

 

*Does not apply to the HP 20b.

Cash Flows 41

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Contents HP Part Number NW238-90001 Edition 1, December Legal Notice HP 20b Business Consultant HP 30b Business Professional Line, alphanumeric scrolling Common Mathematical On/Off/CancelFunctions and Math Math Program menuPage Table of Contents Amortization Interest Conversion Menu Cash Flow Example Sample Cash Flow Diagrams Bonds Bond MenuCanadian Mortgage Example Black-Scholes MenuAdjusting the Display Contrast Basic FeaturesWelcome to your new HP Financial Calculator Turning the Calculator On and OffCursor Mode Menu Setting PreferencesTwo Line Display Dd.mmyyyy Changing the Calculation Mode Primary, Secondary, and Tertiary Key Functions Annunciators Using the Input and Equals KeysInput Key Equals KeyEditing and Clearing Entries On/CE Key Reset MenuMemory and the Memory Menu Accessing Menus and Menu MapsBasic Features DWN Fixed Cost Price Profit QuantityMathematical Functions Mathematical CalculationsNumber Entry and Display Mathematical functions are locatedAlgebraic Mode Chain ModeRPN Stack Reverse Polish Notation RPN ModeIor =, followed by an operation key Last Number See -2for an example using the last number functionO1c23 I56c U3I+ 4 x 5 + 5I6 3I4Duplicating a Number on the Stack RPN Stack and the Swap Operation One-Number Functions and the Math MenuMath Menu Random numberDWN Probability Sub-menu 12I 10IBinomial Functions 15I3hTwo-Number Functions Recall Arithmetic Storing and Recalling NumbersStoring and Recalling with Time Value of Money TVM Keys Rounding Numbers Recalling a Menu Item Value in a MenuPercentages Mathematical Calculations Time Value of Money TVM Keys Time Value of MoneyStores or calculates the amount of each periodic payment Calculating Payments on a Loan1400 00V 360NAmortization Principal Interest Nb Per Start BalanceCreating an Amortization Schedule 10YAmortization Example KeysDisplayDescription To open the Interest Conversion menu IConv press Interest Conversion Menu360 Using the Interest Conversion MenuDWN Canadian Mortgages TVM CanadaCanadian Mortgage Example O300 N6Y35 0000000.00 Cash FlowsCash Flow Example 5000 80004500 400000I 1150Mirr Analyzing Cash FlowsDWN Mirr Fmrr Inv. I% Safe I%Opens the NPV menu Editing Cash Flows Displays FMRR% Sample Cash Flow Diagrams Cash Flows Sample Cash Flow DiagramsSet.Date Mat.Date BondsCPN% Bond Menu42020 82010Bond Calculation Example =L1+ Stock price Strike price Time to maturity Risk-free % Black-Scholes Calculation MenuVolatility % Dividend % Call price Put price Black-Scholes Menu Volatility % input Black-Scholes Example 85I 80I78I 72IPress to scroll to Date Calculation Menu Date CalculationDate Calculation Example Date Days Between Actual Cal.3603120 10I 2010Break-even Menu Break-evenBreak-even Example 250 1500 00I300 100 00IPercent Calculation Menu Business ProblemsPercent Calculation Examples 15I20I Is what % of 80? 80IPress Ito scroll through the options Sline DepreciationBook Value Depreciable Soyd Depreciation Menu00I 500 100Depreciation Example Depreciation Ax2+bx+c only Statistical OperationsData and Stats Menus Statistics Menu Items Description Std. Dev Statistics Example 2I1 65I 1I1 50I3I1 60I 4I1 75IStatistical Operations Programming the HP 30b ProgrammingKey Presses for Program Instructions Hold Hold Programming ExampleProgram Step Reassigning Menu Functions Followed by a label number to go Program Menu and Program EditingTo a specific label Creates label 03 in your program. You can Tests and Jump FunctionsUse the following keystrokes to enter the program Sub-Function Call Long Programs and Battery LifeOther Programming Functions 05003$1DSE ISG , followed by 1 digitMessages Debugging a Program Calculates the volumeSaving, Restoring, and Modifying Mode Settings Solve L1hL1-L2= HoldProgramming Error Messages and Calculator Status Error MessagesError Messages Status ER Unique solution to IRR Not Found HP Limited Hardware Warranty and Customer Care Warranty, Regulatory, and Contact InformationReplacing the Batteries General TermsWarranty, Regulatory, and Contact Information Canadian Notice ModificationsAvis Canadien European Union Regulatory NoticeLow Voltage Directive 2006/95/EC EMC Directive 2004/108/EC Perchlorate Material special handling may apply Contact InformationCustomer Care 香港特別行政區 Martinica 08 5199 Country/Region Contact Vietnam +65-6272-5300 Viêt Nam Zambia Warranty, Regulatory, and Contact Information Symbols Cash flow CalendarChecksum 78 Combinations Date Debugging 85 DecimalInternal rate of return Investment Rate Key Insert and delete keys Interest ConversionKey presses Keyboard map and legend Language MarginOn HP 30b Parentheses MathPercent Calculation Percentages PermutationsStop 83 Store RPNThousands separator Time Value of Money
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30b Professional, 20b Consultant Financial specifications

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