Sharp EL-738 EL-738 Operation Manual - Page 38

Discounted Cash Flow Analysis - npv

Page 38 highlights

Discounted Cash Flow Analysis Analyze unequal cash flows and calculate the net present value (NPV) and the internal rate of return (IRR). Note: Use the TVM solver for equal and regular cash flow analysis (see page 22). Entering cash flow data To find NPV and IRR using discounted cash flow analysis, enter cash flow data, one data item at a time, in the following format: Single cash flows Cash flow value J Repeated cash flows Cash flow value > frequency value J Notes: • Before entering data, press > . b to clear any previously entered cash flow data. • Press , to enter a negative cash flow (outflow). • Make sure the calculator is in NORMAL mode. It is not pos- sible to enter cash flow data when listed financial variables are shown on the display. Press s to exit. • You can enter a total of up to 100 cash flow and/or statistical data items. A single cash flow value is counted as one data item, while a cash flow value with an associated frequency value is counted as two. • Frequency values must be integers between 1 and 999. • If you wish to correct a value before pressing J, press s to delete the entry and enter the correct value. Entering cash flow data Enter cash flow data according to the following cash flow diagram. $7,000 $9,000 $5,000 $5,000 $8,000 -$25,000 37

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37
Discounted Cash Flow Analysis
Analyze unequal cash flows and calculate the net present value
(NPV) and the internal rate of return (IRR).
Note:
Use the TVM solver for equal and regular cash flow
analysis (see page 22).
Entering cash flow data
To find NPV and IRR using discounted cash flow analysis, enter
cash flow data, one data item at a time, in the following format:
Single cash flows
Cash flow value
J
Repeated cash flows
Cash flow value
>
frequency value
J
Notes:
Before entering data, press
>
.
b
to clear any
previously entered cash flow data.
• Press
,
to enter a negative cash flow (outflow).
• Make sure the calculator is in NORMAL mode. It is not pos-
sible to enter cash flow data when listed financial variables are
shown on the display. Press
s
to exit.
• You can enter a total of up to 100 cash flow and/or statistical
data items. A single cash flow value is counted as one data
item, while a cash flow value with an associated frequency
value is counted as two.
• Frequency values must be integers between 1 and 999.
• If you wish to correct a value before pressing
J
, press
s
to delete the entry and enter the correct value.
Entering cash flow data
Enter cash flow data according to the following cash flow dia-
gram.
–$25,000
$7,000 $9,000 $5,000 $5,000
$8,000