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...Finding the IRR on an hp 10BII calculator?

I am trying to figure out how to use my financial calculator to find the IRR for a particular project... I found an example so I could see if I got the correct answer using the calculator but my number was way off. I've read through the user's guide and I can't seem to figure out what I'm doing wrong...

My initial cash flow is ($3,000) with a payout over the next 4 years of: $1,500, $1,200, $800, & $300 respectively.

I did the following to get my answer:

1. I pressed the orange shift and clear key to clear all prior entries.

2. I pressed 4, then orange shift P/YR.

3. I entered 3,000, hit the +/- key, followed by the CF key.

4. I entered 1,500 followed by the CF key, 1,200 followed by the CF key, 800 followed by the CF key, and lastly 300 followed by the CF key.

5. I then pressed the orange shift followed by IRR/YR.

My answer came out to 52.6%. The answer should have been 13.1%.

Can anyone figure out what I'm doing wrong?

1 Answer

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  • 1 decade ago
    Favorite Answer

    Press Shift C to clear the financial keys.

    enter +/- 3000 CF

    enter 1500 CF

    enter 1200 CF

    enter 800 CF

    enter 300 CF

    press Shift CST

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