Texas Instruments BA II Plus User Manual

2: TVM and Amortization Worksheets 45
Example: Present Value of Annual Savings
Procedure Keystrokes Display
Set all variables to defaults.
& } !
RST 0.00
Set payments per year to 1.
& [
1
!
P/Y= 1.00

Return to calculator mode.
& U
0.00
Enter interest rate per cash
flow period.
10
-
I/Y= 10.00

Enter 1st cash flow.
5000
S 0
FV= -5,000.00

Enter period number of 1st
cash flow.
1
,
N= 1.00

Compute present value of 1st
cash flow.
% .
PV= 4,545.45
…
Store in
M1
.
D
1
Enter 2nd cash flow.
7000
S 0
FV= -7,000.00

Enter period number.
2
,
N= 2.00

Compute present value of 2nd
cash flow.
% .
PV= 5,785.12
…
Sum to memory.
D H
1
Enter 3rd cash flow.
8000
S 0
FV= -8,000.00

Enter period number.
3
,
N= 3.00

Compute present value of 3rd
cash flow.
% .
PV= 6,010.52
…
Sum to memory.
D H
1
Enter 4th cash flow.
10000
S 0
FV= -10,000.00

Enter period number.
4
,
N= 4.00

Compute present value of 4th
cash flow.
% .
PV= 6,830.13
…
Sum to memory.
D H
1
Recall total present value.
J
1 23,171.23
Subtract original cost.
B
23000
N
171.23
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 for the company.

Texas Instruments BA II Plus Specifications

General

Type	Financial
Cover	-
Form factor	Pocket
Control type	Buttons
Product color	Black
Digits	10 digits
Display tilting	No
Display number of lines	1 lines
Memory registers	10
Power source	Battery