Sharp EL-738 EL-738 Operation Manual - Page 42
To obtain NPV, To obtain IRR
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2. Enter cash flow data. • Refer to page 37 for instructions on entering cash flow data. 3. Press . < to begin discounted cash flow analysis. • If a previously entered cash flow value is displayed, press s to exit and then press .
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41
2.
Enter cash flow data.
• Refer to page 37 for instructions on entering cash flow data.
3.
Press
.
<
to begin discounted cash flow analysis.
• If a previously entered cash flow value is displayed, press
s
to exit and then press
.
<
.
4.
To find NPV or IRR, do the following:
To obtain NPV:
Enter the interest rate (discounted rate) into RATE(I/Y) and
press
Q
. Move to NET_PV and calculate by pressing
i
and
@
.
To obtain IRR:
Press
@
to calculate IRR (RATE(I/Y)).
Note:
If “Error 5” is displayed in step 4, or if you want to find
another IRR, enter an estimated value into RATE(I/Y) and
calculate again in step 4.
Solving for unequal cash flows
Your company pays $12,000 for a new network system, and
expects the following annual cash flows: $3,000 for the first year,
$5,000 for the second to fourth years, and $4,000 for the fifth
year. At what IRR does the net present value of the cash flows
equal zero?
–$12,000
$3,000 $5,000 $5,000 $5,000
$4,000
1.
Enter cash flow data.
Procedure
Key operation
Display
Bring up the initial dis-
play in NORMAL mode.
s
000
1
*
1