Sharp EL-733 EL-733A Operation Manual - Page 24

RECOGNIZING A DISCOUNTED CASH-FLOW PROBLEM Four functions on Cash-Flow Analysis. the EL-733A deal with Discounted These functions are listed below: Ij Cash-flow group i (where i can be 0, 1, 2, etc.). P1 Number of cash-flows in group i. [NPvl Net present value. I I I I itIr 1 1 1 1 ti Fi IRR Internal rate of return. Financial problems that work with the Discounted Cash-Flow Analysis functions can have cash-flow schedules that look like just about anything, as long as they conform to the three rules for cash-flow schedules on page 39. A problem that requires the Discounted Cash-Flow Analysis functions may have a cash-flow schedule that looks like this: In fact by using the Discounted Cash-Flow Analysis functions, just about any investment situation can be described to your calculator and analyzed. As long as the periods are regular and you understand that interest compounds once per period, you will find these functions to be extremely flexible. Up to this point, the description of financial problem solving has been heavy on the theory and light on the examples. If you have been following along since the beginning of this chapter, you have probably pressed just one or two keys on the EL-733A since you started. t ++++ I I I -I + 111 But now that you have read through the necessary background information, the next section starts in with some examples of TVM calculations. TVM problems are usually the most familiar and the easiest to understand. And understanding TVM problems is a good prerequisite for Discounted Cash-Flow Analysis problems, which are dealt with in the section that starts on page 105. ...or this: