HP 20b Consultant Financial manual Key Description

Cash Flows

Table 5-1Cash Flow Keys

Key

I

Description

Inputs current values to variables in the cash flow list as well as the Net Present Value (NPV) and Internal Rate of Return (IRR) menus.

><	Scrolls up and down.
o	Inserts cash flows into a cash flow list.
j	Removes cash flows from a cash flow list.
RP	Opens internal rate of return (IRR) and Net Present
	Value (NPV) menus.

After an initial investment of $80,000.00, you expect returns over the next five years as follows: cash flow 1, $5,000.00, cash flow 2, $4,500.00, cash flow 3, $0.00, cash flow 4, $4,000.00, cash flow 5, $5,000.00, 5 times, cash flow 6, $115,000.00.

Given this information, calculate the total of the cash flows and the internal rate of return (IRR) of the investment. Calculate net present value (NPV) and net future value (NFV), assuming an annual investment interest rate of 10.5%. See Figure

5-1 and Table 5-2. The example below is shown with RPN as the active operating mode.

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