15-4-3

Cash Flow

IExample 2

Suppose you were offered the investment in Example 1 at a cost of $1,000. What is the net present value (NPV) of the investment? What is the internal rate of return (IRR)?

Note

When performing the calculations for Example 2, you need to enter the cost, as a negative value (–1000), in cell 1 of list1 in the stat editor. After that tap the “Cash” field.

On the dialog box that appears, make sure “list1” is selected for “List variables”, and then tap [OK]. After that you can tap [NPV] and [IRR] to obtain the required values.

To close the Stat Editor window, tap anywhere in the Stat Editor window and then tap the close box (R) in the upper right corner of the screen.

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