Calculator_Inst_for_CF_F10 - tt I tt l cF4 70,000[ENTER tt...

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How to calculate NPV on your financial calculators: I am only showing the two most common models of calculators here. There are too many different models to show the method for all of them. Students must consult the manual for their own calculator, if it differs from these, to learn the appropriate method of doing cash flow problems. Suppose you have a project with the following cash flow pattern. Year 0 -350,000 Year 1 +100,000 Year 2 +120,000 Year 3 + 80,000 Year 4 + 70,000 Year 5 +1 10,000 The discount rate is 1O%. on BA ll Plus: always start by clearing the CF register: lcFl [2'"] [cLR woRK] then enter the cash flows as follows: cFo -350,000 IENTER] [t]
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Unformatted text preview: tt I tt l cF4 70,000 [ENTER] tt I tt l cFs 1 1 0,000 [ENTER] tt I tt l now enter the interest rate and compute NPV INPVI 10 IENTER] [r] [CPT] Answer is $16,300 Year 0 Year 1 Year 2 Year 3 Year 4 on Sharp: IRCLI [CF] [2'"] tCAl [ENT]-350,000 [cF] 100,000 [cF] 120,000 [cF] 80,000 [cF] 70,000 [cF] 1 10,000 [cF] 10 [i] [cMPr] [NPV] Answer is $16,300 The BA ll Plus can shorten multiple repeat entries as follows: Suppose you have a project with the following cash flows and discount rate = 11o/o'.-5,000 Enter after clearing: CFO -5000 [ENTER] tll +2,000 2000 [ENTER] [l] +2,000 2 [ENTER] tll +4,000 4000 [ENTER] [l] +4,000 2 [ENTER] [i] INPVI 11 [ENTER] [i] [CPr] Answer is $3,984.74 133 *A...
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This note was uploaded on 05/17/2011 for the course COMM 308 taught by Professor Ravimateti during the Spring '10 term at Concordia Canada.

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