Sharp EL-738 3000000, 600000, Variables used in discounted cash flow analysis, NPV and IRR

Procedure	Key operation					Display
Change the first cash	,30000 J					CF D—=
flow value from –25,000
to –30,000.						-3000000
Change the frequency	iiii					CF N3=
of 5000 from 2 to 1.	iii		1		J	100
Add a new data set	.e	6000		J		CF D3=
(6000) immediately						600000
before 5000.

To confirm the corrections, press .zto jump to the first data item and press ito browse through each data item.

Variables used in discounted cash flow analysis

Variable	Description	Default value
RATE (I/Y)	Internal rate of return (IRR)	0
NET_PV	Net present value (NPV)	—

•The variable RATE (I/Y) is shared by the variable I/Y. NET_PV is for calculation only and has no default value.

•The BGN/END setting is not available for discounted cash flow analysis.

NPV and IRR

The calculator solves the following cash flow values:

Net present value (NPV):

The total present value of all cash flows, including cash paid out (outflows) and cash received (inflows). A profitable investment is indicated by a positive NPV value.

Internal rate of return (IRR):

The interest rate that gives a net present value of zero.

Basic operations

Refer to page 19 for basic variable operations.

1.Press sto clear the display.

• Make sure the calculator is in NORMAL mode.

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