Financial Calculations Worksheet Page 19
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3019 - 4
Investment Appraisal
Perform the following key operations from the input screen.
bbw(
I
% = 11)
6(List)2(List2)
1(
NPV
)
Now you can press 6 to draw a cash flow graph.
6(GRPH)
Pressing !1 (TRCE) activates trace, which can be used to look up the
following values.
!6(G↔T)
4(
NFV
)
1(REPT)
3(
PBP
)
Example
An investment of $10,000 in machinery projects the annual
revenues shown in the table below (all revenues realized at the
end of the fiscal year). What is the internal rate of return of this
investment if the useful service life of the machinery is five
years and the resale value after five years is $3,000?
Year
Revenues
1
2,000
2
2,400
3
2,200
4
2,000
5
1,800 + 3,000
339
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