Calculating Internal Rate of Return

1.Press ]O:, and store the desired number of periods per year in P/YR.

2.Enter the cash flows using Æand ¤.

3.Press .

Figure 4 Cash flow diagram (Investments in stock)

Table 8-2 Example 1: a short term investment

KeysDisplay Description

]O:

CFLO CLR

Clears cash flow memory.

 

 

(message flashes, then

 

 

disappears)

 

 

 

 

JG\Í

12.00

Set payments per year.

 

 

 

 

V:::y¤

-5,000.00

Enters initial cash flow. Note the

 

 

(CF 0 flashes, then

CFLO and CF annunciators.

 

disappears)

 

 

 

 

G:::y¤

-2,000.00

Enters first cash flow. Note the

 

 

(CF 1 flashes, then

CFLO and CF annunciators.

 

disappears)

 

 

 

 

90 Cash Flow Calculations