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U
SER’S GUIDE — 17
s c Frequency (Freq) —The second function of this key
labels a cash flow that is repeated consecutively, or
grouped (e.g., if a cash flow is repeated three times
in a row, first enter the cash flow value into the c
key, then enter the frequency, or number of occur-
rences (3 s c).
Note: to use the Frequency function, a cash flow must repeat
itself consecutively. If it occurs more than once out of order, or
is not consecutive, you must enter it separately, just like other
cash flows (do not use the Frequency function).
R Internal Rate of Return — This multi-function key
calculates, upon consecutive presses:
Press Display or Calculation
1 IRR%*
2 Net Present Value (NPV)**
3 Net Future Value (NFV)
4 Desired Interest Rate (entered prior to cal-
culating, or stored in ˆ key)
*IRR: The rate of return at which the discounted future cash flows
equal the initial cash outlay (C-0). An IRR greater than the desired
rate of return is financially attractive (the higher, the better).
**NPV: Another tool to analyze cash flow scenarios. A positive
NPV indicates that an investment is attractive (again, the higher,
the better).
NPV is computed by adding the initial investment (C-0), a nega-
tive cash outlay, to the present value of the estimated future cash
flows.
Note: If there is no initial investment/cash outlay, enter “0” into the
first cash flow register (C-0).
s R NPV/NFV — If you wish to skip the IRR% calcula-
tion display (see above), press s R to calculate
NPV. Second press calculates NFV.
s 6 Clear Cash Flows (Clear CF) — Deletes all cash
flows. Use this before you begin a new cash flow
example.
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