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Divyam21
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Message 1 of 3
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HP 10bII+ Displaying wrong cash flow answer

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HP 10bII+ Financial Calculator

I am doing a cash flow question where I have to work out the IRR

My P/YR is 1.

cf0= 69280

cf1= 0

cf2= 0

cf3= -60000

cf4= 0

cf5= -60000

 

I then input IRR (Shift CST) and get the answer of -4.68%

The answer is supposed to be 15%.

 

I have tried the same question on two of my friend's calculators and they both get 15%.

I have figured out that this -4.68% comes from the calculator not taking into account the last -60000 cash flow. 

Please help as I have an exam on Monday.

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2 REPLIES 2
BartdB
Level 9
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Message 2 of 3
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Hi,

 

I think the problem might be how you're entering the data:

 

to enter the cashflows, first enter the number then CFj

 

69280 CFj (calculator flashes CF0 then displays 69,280.00 )

0 CFj (calculator flashes CF1 then displays 0.00 )

etc.

 

Using your data I get an IRR of 15.00

 

Regards.

-Bart
_________________________________________________________
calculator enthusiast
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David_M
Level 6
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Message 3 of 3
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I also get a result of 15% using your data.

 

Following along the lines of BartdB's suggestion, you can also verify that the cash flows have been entered correctly by using the "cash flow editor".  To activate it, press RCL CFj.  Then you can step through each cash flow entry (both the value and repeat factor) by pressing the + and - minus keys.  There will be a final "blank" value in CF 6 when stepping through the entries this way.  To exit the cash flow editor, press the C (clear) key.

 

Good luck with your exam!

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