Figure 5 Initial cash flow and cash flow groups

Whenever you enter a series of cash flows, it is important to account for every period on the cash flow diagram, even periods with cash flows of zero.

Example

Enter the cash flows from the preceding diagram and calculate the IRR/YR. Assume there are 12 periods per year.

Table 8-3 Example calculating IRR and effective interest rate

KeysDisplay Description

]O:

CFLO CLR

Clears cash flow memory.

 

 

(message flashes, then

 

 

disappears)

 

 

 

 

JG\Í

12.00

Set payments per year.

 

 

 

 

JJ:::y¤

(CF 0 flashes, then

cash flow group number and

 

-11,000.00

Enters initial cash flow. Displays

 

disappears)

amount. Note the CFLO and CF

 

 

annunciators.

 

 

 

:¤

0.00

Enters first cash flow group

 

 

(CF 1 flashes, then

amount. Note the CF

 

disappears)

annunciator.

 

 

 

S\¥

6.00

Enters number of repetitions.

 

 

(CFn 1 flashes, then

Note the CFLO and N

 

disappears)

annunciators.

 

 

 

92 Cash Flow Calculations