Keys:

Display:

Description:

 

 

 

 

 

 

 

 

 

"

Displays TVM menu.

 

"

 

]

 

 

 

 

 

 

 

 

 

 

"

Sets 1 payment per year

 

.

1

 

Y

 

 

 

 

 

 

 

 

# 5?@2 JH=;< 0EAH"

and Begin mode.

 

Z

e

35

 

 

 

 

<8%.&(("

Stores years until

 

T

 

 

 

 

 

 

 

 

 

 

 

 

 

 

retirement.

v8.175 -28 % *&#*/$&$,"

Calculates and stores

v

 

 

 

 

 

;6@28.&*,"

interest rate diminished by

U

 

 

 

 

 

 

 

 

 

 

 

 

 

tax rate.

0

 

 

 

 

Stores no present value.

 

V

 

 

5O8(&(("

 

 

 

 

3000 &

W

50:8/%K(((&(("

Stores annual payment.

 

 

 

Calculates future value.

 

X

 

GO8%+.K.(.&'#"

8

 

 

"

Calculates present-value

 

U

 

0

 

 

"

purchasing power of the

 

W

 

 

 

5O8/$%K%'*&##"

above FV at 8%

 

V

 

 

 

 

 

 

 

 

 

 

 

 

 

 

inflation.

Modified Internal Rate of Return

When there is more than one sign change (positive to negative or negative to positive) in a series of cash flows, there is a potential for more than one IRR%. For example, the cash-flow sequence in the following example has three sign changes and hence up to three potential internal rates of return. (This particular example has three positive real answers: 1.86, 14.35, and 29.02% monthly.)

The Modified Internal Rate of Return (MIRR) procedure is an alternative that can be used when your cash-flow situation has multiple sign changes. The procedure eliminates the sign change problem by utilizing reinvestment and borrowing rates that you specify. Negative cash flows are discounted at a safe rate that reflects the return on an investment in

14: Additional Examples 209

File name : 17BII-Plus-Manual-E-PRINT-030709

Print data : 2003/7/11