Example1:

What is the PV of the following cash flows if the interest rate is 10%?

Year 1: 1,000    Year 2: 2,000    Year 3: 3,000

Here is the keystrokes to solve the above question:

Remember to setup the calculator first - 1 P/YR.

• Press [Orange Shift] key and [C ALL]  key will display 1 P_Yr
• Enter 0 and press [CFj] Display 0 followed by 0.00
• Enter 1000 and press [CFj] Display 1 followed by 1,000.00
• Enter 2000 and press [CFj] Display 2 followed by 2,000.00
• Enter 3000 and press [CFj] Display 3 followed by 3,000.00
• Enter 10 and press [I/YR] Display 10.0
• Finally press [Orange Shift] key and [NPV] key to obtain the answer.  \$ 4,816 is displayed as the PV of the varying cash flows for 3 years.

Example 2:

What is the NPV of the following cash flows if the interest rate is 10% and we spent \$4,000 up front to bring about this following varying cash flows at 10%?

Year 1: 1,000   Year 2: 2,000   Year 3: 3,000

Here is the keystrokes to solve the above question:

Remember to setup the calculator first - 1 P/YR.

• Press [Orange Shift] key and [C ALL]  key will display 1 P_Yr
• Enter 4,000 and press [+/-] followed by [CFj] key Display 0 followed by -4,000.00
• Enter 1,000 and press [CFj] Display 0 followed by 0.00
• Enter 2,000 and press [CFj]
• Enter Enter 3,000 and press [CFj]
• Enter 10 and press [I/YR]
• Finally press [Orange Shift] key and [NPV] key to obtain the answer.  \$ 816 is displayed as the NPV of an cost of \$4,000 and inflow of 3 varying years.