Keys:

 

 

Display:

Description:

 

 

 

 

 

 

 

 

 

Displays TVM menu.

 

 

 

 

 

 

 

 

 

 

 

 

Sets 1 payment per year

 

1

 

 

 

 

 

 

 

 

 

 

 

and Begin mode.

 

e

 

 

   

35

 

 

 

 

 

 

 

Stores years until

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

retirement.

v8.175 -28 % 

Calculates and stores

v

 

 

 

 

 

 

 

 

interest rate diminished by

 

 



 

 

 

 

 

 

 

 

 

 

 

 

tax rate.

0

 

 

 

 

 

 

Stores no present value.

 

 

 

 

 



 

 

 

 

3000 &



Stores annual payment.

 

 

 

 

 

Calculates future value.

 

 

 

 



8

 

 

 

 

 

Calculates present-value

 

 

 

 

0

 

 

 

 

 

purchasing power of the

 

 

 

 

 

 

 

 

 

above FV at 8%

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

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

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