10bII Financial Calculator – Uneven Cash Flow Tutorial & Example

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Hello everyone welcome to financial calculator tutorial in this video we will show you how to use the cashflow functions to find the net present value for example you have an opportunity to invest in a start-up for one year with a commitment of returning $500 each month from the first to the sixth month $1,000 each month from the month of 7th to 11th you will get

$4,000 on the last month how much should you pay for the contract if you wish to yield a yearly rate of 15% on your investment first we get started with clearing the previous data and sets the payment setting it is better to clear the resistors before input new data to do that tap yellow shift and clear all because you will not get the money as initial investment

Then it will be 0 set the initial cash flow of 0 into cfj the cashflow number will display note that the j stands for cashflow number it is an integer from 0 to 99 because you will receive $500 each month for the first 6 months you enter 500 as the amount of cash flow you will receive the same amount of money for 6 months therefore enter 6 and tap yellow shift

+ N j similar way with the cash flow from the month of 7th to the 11th but this time you will get 1000 for each month enter 1,000 and tap cfj from 7th to the 11th month the duration is 5 months then set 5 into the yellow shift and press nj you will receive the final payment of 4000 on the 12th month you set 4000 then tap cfj since we want to yield 15% for this

Investment set 15 into i yr to calculate the money you should pay for the contract tap yellow shift + net present value the result is ten thousand seven hundred and ninety point eight three that means you should invest ten thousand seven hundred and ninety dollars and eighty three cents for the contract could we discuss more to reduce the investment to 10,000

And see how much interest yield after one year you’re going to edit the initial cash flow with the new amount of money is $10,000 it is a negative number since you are going to give your money out of your pocket enter ten thousand negative sign and tap yellow shift sto cfj and zero then tap yellow shift and irr per year to calculate the annual nominal yield the

Result is twenty six point zero four percent it is a high-yield interest isn’t it thank you for watching if you’re interested in this amazing financial calculator app please click the app store link in video description if you have any questions please feel free to email us at support at body calcs com you

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10bII Financial Calculator – Uneven Cash Flow Tutorial & Example By IncptMobiS