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# Remember to enter an inflow cash received as a

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Unformatted text preview: 7 until all cash flows and frequencies are entered. When you have entered all of your cash-flow data, you can press to review all of your entries. Chapter 3: Using the Cash Flow Worksheet or 31 Deleting Cash Flows When you delete a cash flow, the calculator decreases the numbers of subsequent cash flows . Before deleting 8,000 cash flow After deleting 8,000 cash flow Procedure: Deleting a Cash Flow The DEL indicator lets you know when you can delete a cash flow. 1. Press 2. Press or until the cash flow you want to delete is displayed. . The cash flow you specified (and its frequency) is deleted. The calculator decreases the numbers of subsequent cash flows so that there is no gap. Inserting Cash Flows When you insert a cash flow, the calculator increases the numbers of the current and subsequent cash flows. When inserting cash flows, remember that the most cash flows you can enter is 24. 32 Chapter 3: Using the Cash Flow Worksheet Procedure: Inserting a Cash Flow The INS indicator lets you know when you can insert a cash flow. 1. Press or until the display shows the current cash flow where you want to insert the new cash flow. For example, if you want to insert a new second cash flow, display C02. X. 2. Press 3. Key in the value of the new cash flow and press . The new cash flow is entered “before” the current cash flow. The calculator increases the numbers of the current and subsequent cash flows. For example, C02 becomes C03. 4. If necessary, press . . Then key in a value for the frequency and press Computing NPV and IRR IRR is the interest rate at which the net present value of the cash flows is equal to zero. NPV is the sum of the present values for the cash inflows (cash received) and outflows (cash paid out). A positive value for NPV indicates a profitable investment. Procedure: Computing Net Present Value 1. Press (. is displayed, along with the previous value. 2. Key in a value for (discount rate) and press 3. Press . to display the NPV variable label. 4. Press to com...
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## This homework help was uploaded on 04/03/2014 for the course ECON 203 taught by Professor Petry during the Summer '09 term at University of Illinois, Urbana Champaign.

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