Table 8-3

Example calculating IRR and effective interest rate

 

 

 

 

 

Keys

 

Display

Description

 

 

 

J:::¤

1,000.00

Enters second cash flow group

 

 

 

 

(CF 2 flashes, then

amount. Note the CFLO and CF

 

 

disappears)

annunciators.

 

 

 

D\¥

3.00

Enters number of repetitions.

 

 

 

 

(CFn 2 flashes, then

Note the CFLO and N

 

 

disappears)

annunciators.

 

 

 

J::::¤

10,000.00

Enters third cash flow. Note the

 

 

 

 

(CF 3 flashes, then

CFLO and CF annunciators.

 

 

disappears)

 

 

 

 

 

21.22

Calculates the annual nominal

 

yield.

 

 

 

 

Viewing and Editing Cash Flows

The cash flow editor application allows you to review entered data quickly to ensure accuracy. In addition, you may edit, add, or delete cash flow data as needed.

1.Press to open the editor. The current repeat value and the current cash flow

value are displayed. The CFLO annunciator appears, and either CF or N identifies which value is being displayed.

2.Press 1to move up through the current cash flow information. When you pass the

maximum of the data, an empty cash flow pair is displayed before wrapping around to CF0, provided there is enough memory for another cash flow pair to be entered.

3.Press Ato move down through the current cash flow information. At CF0 the display wraps around to the maximum cash flow pair count.

4.At any time with the editor open, press ¤to return to CF0. To jump to a specific cash flow, type the desired whole number of the desired cash flow item, J, and press ¤.

The editor jumps to that position. If the number is higher than your maximum current cash flow item count, it will place you at the highest cash flow value. If an invalid entry is typed, such as a negative number or a non-whole number, the editor remains in its current location.

5.To delete the current cash flow pair, press a. To add a new cash flow with a value of 0 and a repeat value of 1 before the currently displayed item, press P.

Cash Flow Calculations 93

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HP 10bII+ Financial manual Viewing and Editing Cash Flows

10bII+ Financial specifications

The HP 10bII+ Financial Calculator is a versatile and powerful tool designed to meet the needs of finance students, professionals, and anyone involved in financial planning and analysis. Known for its compactness and user-friendly interface, this calculator incorporates a range of features specifically tailored for financial calculations, making it an essential gadget for banking, real estate, and investment analysis.

At the heart of the HP 10bII+ is its ability to perform a wide variety of financial functions, including time value of money calculations, cash flow analysis, bond pricing, and depreciation. Its built-in functions facilitate the computation of interest rates, present and future values, net present value (NPV), internal rate of return (IRR), and annuities. This array of functionalities allows users to tackle complex financial problems with ease.

One of the standout technologies in the HP 10bII+ is its RPN (Reverse Polish Notation) input system, which allows for efficient data entry and calculation. Users can perform consecutive calculations without the need for parentheses, streamlining the process significantly. Alternatively, the calculator can also function with a standard algebraic input, catering to different user preferences.

The design of the HP 10bII+ is sleek and compact, making it highly portable and easy to handle. With a large, easy-to-read display, it ensures that users can view their calculations clearly, even in low-light environments. The keys are well-spaced and tactile, allowing for a comfortable typing experience during intensive calculations.

The calculator also offers a range of memory functions, enabling users to store and recall important values easily. This is particularly useful for financial professionals who must deal with multiple calculations and refer back to previous results frequently.

Additionally, the HP 10bII+ is powered by two AAA batteries, providing a long battery life that ensures reliability during extended use. It also features an automatic shut-off function, which conserves battery life when the calculator is not in use.

In summary, the HP 10bII+ Financial Calculator is a high-performance device that combines essential financial functions with user-friendly design and robust technology. Whether for educational purposes or professional finance work, its capabilities make it an invaluable asset for anyone dealing with financial calculations and decision-making.