Cash Flows

Table 4-3NPV and IRR Menu Items

 

 

Item

Description

 

 

Inv. I%

Investment or discount rate. Enter the investment rate or discount rate for the cash

 

flow followed by I.

 

 

Net PV

Net present value. Shows the value of the cash flows at the time of the initial cash

 

flow, discounting the future cash flows by the value set for Inv. I%.

 

 

Net FV

Net future value. Shows the value of the cash flows at the time of the last cash flow,

 

discounting the earlier cash flows by the value set for Inv. I%.

 

 

Net US

Net uniform series. Shows the per-period payment of a regular, periodic cash flow of

 

equivalent present value to the cash flow list.

 

 

Payback

Payback. Shows the number of periods for the investment to return value.

 

 

Discounted Payback

Discounted Payback. Shows the number of periods required for the investment to

 

return value if the cash flows are discounted using the value set in Inv. I%.

 

 

Total

The sum of all the cash flows, equivalent to NPV if Inv. I% is 0.

 

 

#CF/Yr

The number of cash flows per year. The default is 1.

 

 

IRR%

Internal rate of return. This is the discount rate for the cash flow that returns a Net

 

Present Value of 0.

 

 

See Table 4-4 for an example of the NPV and IRR functions using the cash flow example in Table 4-2.

Table 4-4NPV and IRR Example

Keys

Display

Description

P

Opens the NPV menu.

10.

5I

Inputs 10.5 for investment rate.

<

<

<

Displays the NPV of the cash flow with the given Inv. I%.

Displays the NFV of the cash flow with the given Inv. I%.

Displays the Net US of the cash flow with the given interest rate.

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