Cash Flows

Table 5-3NPV and IRR Menu Items

 

 

Item

Description

 

 

Total=

The sum of all the cash flows, equivalent to NPV if Inv.

 

I% is 0.

 

 

RIRR%=

Internal rate of return. This is the discount rate for the

 

cash flow that returns a Net Present Value of 0.

 

 

See Table 5-4 for an example of the NPV and IRR functions using the cash flow example in Table 5-2. Press Pand Rto open the menus. At Inv. I%, key in a number followed by I. Scroll through the menus by pressing >or

<repeatedly. The example below is shown with RPN as the active operating mode.

Table 5-4NPV and IRR Example

KeysDisplayDescription

P

Opens NPV menu starting with current value of Inv. I%.

10.

5I

Inputs 10.5 as current Inv. I%.

<

Scrolls to current value for NPV.

60

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HP 20b Consultant Financial manual Rirr%=