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)

 

 

 

 

 

\Á

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 v¤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