Sharp EL-733 EL-733A Operation Manual - Page 22

2.

The

vertical

up-

and

down-arrows

represent

cash

-flows.

Up-arrows

represent

positive cash

-flows,

which

is

money

coming

in.

Down-arrows

represent

negative

cash

-flows,

which

is

money

going

out.

3.

Cash

-flows

can

occur

only

at

the

beginning

or

ending

of

each

period.

Two

or

more

cash

-flows

occurring

at

the

same

time

must

be

netted

together

before

they

can

be

keyed

into

the

calculator.

This

means

that,

with

the

exception

of

the

fi

rst

and

last

periods,

only

one

cash

-flow

can

occur

per

period.

However,

the

EL

-733A

is

admittedly

weak

when

it

comes

to

deciphering

the

jargon

of

a

particular

fi

nancial

fi

eld

into

i

terms

like

n,

i,

PV,

FV,

PMT,

or

CFi

and

Ni.

The

t

responsibility

of

translating

the

words

into

the

right

numbers

in

the

right

place

falls

primarily

on

your

shoulders,

and

this

is

often

the

most

difficult

part

of

coming

up

with

exactly

the

right

answer.

In

the

explanation

and

examples

that

follow,

you

will

get

a

little

i

practice

at

deciphering

the

jargon.

As

long

as

your

cash

-flow

schedules

conform

to

the

above

three

rules,

you

will

be

able

to

key

them

directly

into

your

EL

-733A

for

a

solution.

Often

times,

especially

in

complicated

cash

-flow

situations,

a

little

work

may

be

1

,

involved

in

making

a

cash

-flow

schedule

conform

to

those

three

rules.

So

keep

reading.

THE

THREE

PARTS

OF

A

FINANCIAL

SOLUTION

The

solution

to

every

fi

nancial

problem

consists

of

three

general

steps:

(1)

deciphering

the

jargon

into

terms

that

you

understand,

(2)

drawing

the

cash

-flow

schedule

(or

picturing

it

in

your

mind),

and

(3)

crunching

the

numbers.

Now

the

EL

-733A

takes

a

very

active

role

in

the

crunching

the

numbers

part.

It

will

give

you

accurate

answers

based

on

the

information

that

you

supply.

Also,

you

may

make

some

use

of

the

EL

-733A

when

constructing

the

cash

-flow

schedule.

With

situations

like

wrap

-around

mortgages

and

discounted

contracts,

it

may

take

several

Time

-Value

-

Of

-Money

calculations

to

even

arrive

at

the

fi

nal

cash

-flow

schedule.

49

The

EL

-733A

Financial

Functions

And

Terms

The

EL

-733A

has

two

main

groups

of

financial

functions:

the

Time

-Value

-Of

-Money

functions

(TVM

functions)

and

the

Discounted

Cash

-Flow

analysis

functions.

The

TVM

functions

are

designed

to

work

with

problems

that

have

a

cash

-flow

at

the

beginning

of

the

time

line,

a

cash

-flow

at

the

end

of

the

time

li

ne,

and

a

stream

of

regular,

level

cash

-flows

in

between.

(The

amount

of

any

cash

-flow

can

be

zero.)

The

Discounted

Cash

-Flow

functions

can

usually

be

used

to

solve

any

problem

that

cannot

be

solved

with

the

TVM

functions.

is

uy

Sharp EL-733 EL-733A Operation Manual - Page 22

Sharp EL-733 Manual

Page 22 highlights