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32 Time-Value-of-Money and Amortization Worksheets
Answer: The present value of the cash flows is $23,171.23, which exceeds
the machine’s cost by $171.23. This is a profitable investment.
To Press Display
Set all variables to defaults. &}
!
RST 0.00
Enter interest rate per cash flow
period.
10 -
I/Y=
10.00
1
Enter 1st cash flow. 5000 S 0
FV=
-5,000.00
1
Enter 1st cash flow period. 1 ,
N=
1.00
1
Compute present value of 1st cash
flow.
C .
PV=
4,545.45
7
Store in M1. D 1
4,545.45
Enter 2nd cash flow. 7000 S0
FV=
-7,000.00
1
Enter 2nd cash flow period. 2 ,
N=
2.00
1
Compute present value of 2nd
cash flow.
C .
PV=
5,785.12
7
Sum to memory. DH 1
5,785.12
Enter 3rd cash flow. 8000 S0
FV=
-8,000.00
1
Enter period number. 3 ,
N=
3.00
1
Compute present value of 3rd
cash flow.
C.
PV=
6,010.52
7
Sum to memory. DH 1
6,010.52
Enter 4th cash flow. 10000 S0
FV=
-10,000.00
1
Enter period number. 4 ,
N=
4.00
1
Compute present value of 4th
cash flow.
C.
PV=
6,830.13
7
Sum to memory. DH 1
6,830.13
Recall total present value. J 1
23,171.23
Subtract original cost. B 23000 N 171.23
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