Sharp EL-738 To obtain NPV, To obtain IRR, Solving for unequal cash flows, Play in Normal mode

2.Enter cash flow data.

•Refer to page 37 for instructions on entering cash flow data.

3.Press .<to begin discounted cash flow analysis.

•If a previously entered cash flow value is displayed, press sto exit and then press .<.

4.To find NPV or IRR, do the following:

To obtain NPV:

Enter the interest rate (discounted rate) into RATE(I/Y) and press Q. Move to NET_PV and calculate by pressing i and @.

To obtain IRR:

Press @to calculate IRR (RATE(I/Y)).

Note: If “Error 5” is displayed in step 4, or if you want to find another IRR, enter an estimated value into RATE(I/Y) and calculate again in step 4.

1 Solving for unequal cash flows

Your company pays $12,000 for a new network system, and expects the following annual cash flows: $3,000 for the first year, $5,000 for the second to fourth years, and $4,000 for the fifth year. At what IRR does the net present value of the cash flows equal zero?

$3,000 $5,000 $5,000 $5,000 $4,000

–$12,000

1.Enter cash flow data.

Procedure	Key operation	Display
Bring up the initial dis-	s*1	000
play in NORMAL mode.

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