Using the Nj Key and Finding FV of a Complex Cash Flow

Using the Nj Key and Finding FV of a Complex Cash Flow - To...

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The easiest way to find a future value of a complex cash flow on your calculator is to find the present value, then compound forward. In addition, make sure that you know how to use the Nj key when using the cash flow (CFj) registers on your calculator. There are only 14 CFj registers and the Nj key can be used to input like values without using multiple registers. An example: suppose you have cash flows of $100 in Years 1-3, $200 in Years 9- 12, and an interest rate of 10 percent.
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Unformatted text preview: To find the value at Year 15 you would input CFj 0 (place holder; must have single cash flow to start) CFj $100 (Year 1) Nj 3 (Year 1 through Year 3) CFj 0 (place holder: Year 4) Nj 5 (Year 4 through Year 8) CFj $200 (Year 9) Nj 4 (Year 9 through Year 12) I/YR 10 Solve for NPV = $544.44 Once you convert the complex cash flows into a present value, you can then compound forward to any future year. N = 15; I/YR = 10; PV = -544.44; Solve for FV = $2,274.26...
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This note was uploaded on 02/11/2011 for the course FIN 3403 taught by Professor Tapley during the Spring '06 term at University of Florida.

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