Texas Instruments BA-20 Profit Manager User Manual - Page 36

Press, Display, Enter 2nd cash flow.

Page 36 highlights

Given a 10% discount rate, does the present value of the cash flows exceed the original cost of $23,000? To Press Set all variables to defaults. & } RST ! Enter interest rate per cash flow 10 - I/Y= period. Enter 1st cash flow. 5000 S 0 FV= Enter 1st cash flow period. 1 , N= Compute present value of 1st cash % . PV= flow. Store in M1. D 1 Enter 2nd cash flow. 7000 S 0 FV= Enter 2nd cash flow period. 2 , N= Compute present value of 2nd % . PV= cash flow. Sum to memory. DH 1 Enter 3rd cash flow. 8000 S 0 FV= Enter period number. 3 , N= Compute present value of 3rd % . PV= cash flow. Sum to memory. DH 1 Enter 4th cash flow. 10000 S 0 FV= Enter period number. 4 , N= Display 0.00 10.00 -5,000.00 1.00 4,545.45 4,545.45 -7,000.00 2.00 5,785.12 5,785.12 -8,000.00 3.00 6,010.52 6,010.52 -10,000.00 4.00 32 Time-Value-of-Money and Amortization Worksheets

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32
Time-Value-of-Money and Amortization Worksheets
Given a 10% discount rate, does the present value of the cash flows
exceed the original cost of $23,000?
To
Press
Display
Set all variables to defaults.
& }
!
RST
0.00
Enter interest rate per cash flow
period.
10
-
I/Y=
10.00
Enter 1st cash flow.
5000
S 0
FV=
-5,000.00
Enter 1st cash flow period.
1
,
N=
1.00
Compute present value of 1st cash
flow.
% .
PV=
4,545.45
Store in
M1
.
D
1
4,545.45
Enter 2nd cash flow.
7000
S 0
FV=
-7,000.00
Enter 2nd cash flow period.
2
,
N=
2.00
Compute present value of 2nd
cash flow.
% .
PV=
5,785.12
Sum to memory.
D H
1
5,785.12
Enter 3rd cash flow.
8000
S 0
FV=
-8,000.00
Enter period number.
3
,
N=
3.00
Compute present value of 3rd
cash flow.
% .
PV=
6,010.52
Sum to memory.
D H
1
6,010.52
Enter 4th cash flow.
10000
S 0
FV=
-10,000.00
Enter period number.
4
,
N=
4.00