# *Precision *Financial Calculator

#### Example 1-4 __Timing Makes Difference__

Continue from Example 1-1. What if Mr. Thompson
invests $50,000 at the year's end and receives revenues also at the end of the
following years. Will NPV change? How about IRR,
FV?

**[Answer: IRR=10.14%; NPV=$8,318 vs. $8,636; FV=$10,033]**

Example 1-1 has higher Net Present Value ($8,636), but IRR and FV remain unchanged.
Note that investment happens at the year's end. So you need to enter 0 to row
1.

**[Procedures]**

In the Cash Flow worksheet, type in 0, -50000, 10000, 15000, 20000, 20000
from row 1 to row 6. Click row 1, keep on pressing left mouse button, drag down
until row 6. You will see the IRR=10.14%. Next, enter 3.82 in the Discount Rate
box. You will get NPV and FV.

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