Instructions for Using the Sharp EL range of
Business/Financial Calculators
These instructions are based on the Sharp EL-733A Business/Financial
Calculator, and may vary slightly with different models. Digits or letters in
blocks represent the keys on the calculator to be struck.
Topic A: Net Present Value
Consider the following information:
o Investment:
R100 000.00
o Income for Year 1:
R10 000.00
o Income for Year 2:
R20 000.00
o Income for Year 3:
R30 000.00
o Income for Year 4:
R40 000.00
o Income for Year 5:
R50 000.00
Topic A, Step 1: Clearing the Memory
In order to effectively perform financial calculations the calculator's memory
must be cleared of all data. This is achieved as follows:
0 xÎM and then 2nd F CyCE
Topic A, Step 2: Establish "Financial Mode"
In order to perform financial calculations, the calculator must be in financial
mode. The Sharp EL-733A Business/Financial Calculator has three possible
modes:
o Financial
FIN is displayed on the top of the screen.
o Statistical STAT is displayed on the top of the screen.
o Standard Blank display on the top of the screen.
To establish FIN mode:
2nd F and then Î repeatedly until FIN appears on the display.
Prepared by: Norwin Lederer
Sharp EL733A Business Financial Calculator
Page 1 of 8
Topic A, Step 3: Enter the Data
Keys
Display
100000 +/- CFi
-100000
10000 CFi
10000
20000 CFi
20000
30000 CFi
30000
40000 CFi
40000
50000 CFi
50000
Topic A, Step 4: NPV @ 12%
To establish the NPV for the abovementioned data at 12% perform the
following actions:
Keys
Display
12 i
12
NPV wait
17.9223354
Therefore the NPV at 12% for the above data is R17.92.
Topic A, Step 5: NPV @ 20%
Should you have to calculate the NPV at 20% for the abovementioned data,
simply perform the following:
Keys
Display
20 i
20
NPV wait
-21032.66461
Therefore the NPV at 20% for the above data is -R21 032.66.
Bear in mind that you must not clear the memory (i.e. Step 2) to perform
an NPV calculation, as this will erase all the data that you entered in Step 3. If
your calculator's Auto Off feature has activated before you have performed the
NPV calculation you will have to perform Steps 1 to 3 again.
Prepared by: Norwin Lederer
Sharp EL733A Business Financial Calculator
Page 2 of 8
Topic A, Step 6: NPV @ 5%
Should you have to calculate the NPV at 5% for the abovementioned data,
simply perform the following:
Keys
Display
5 i
5
NPV wait
25663.93436
Therefore the NPV at 5% for the above data is R25 663.93.
Topic A, Step 7: Determining the IRR
In order to calculate the IRR no interest rate needs to be entered, i.e. Steps 4,
5 and 6. However, the likelihood is quite great that you are calculating NPV's
over a range of interest rates and the IRR. The data from Step 3 should still
be resident in the calculator's memory; if not, re-perform Step 3.
Keys
Display
IRR long wait
12.00576195
Therefore the IRR is 12%.
Topic B: Discount Factor / DCF
The following are the steps to establishing the DCF. Bear in mind that if you
are performing a NPV or IRR on a financial calculator it is unnecessary to
determine the DCF, as the calculator automatically performs these functions in
its memory.
Consider the following question:
o What is the discount factor in the 8th year of an investment where the
interest rate is 5%?
Firstly, let's consider the formula:
1
DCF =
(1 + i ) n
where
i = interest rate &
n = period
1
(1 + 0.05) 8
Note: 5% is equal to 0.05 or 5/100.
therefore DCF =
Prepared by: Norwin Lederer
Sharp EL733A Business Financial Calculator
Page 3 of 8
To perform this on the calculator do the following:
Keys
Display
1
1
+
1
0.05
0.05
=
1.05
yx
1.05
8
8
=
1.477455444
1/x
0.676839362
Therefore the DCF for the 8th year at an interest rate of 5%, to four decimal
points, is 0.6768.
Example 2:
o What is the discount factor in the 2nd year of an investment where the
interest rate is 5%?
Keys
Display
1
1
+
1
0.05
0.05
=
1.05
yx
1.05
2
2
=
1.1025
1/x
0.907029478
Therefore the DCF for the 2nd year at an interest rate of 5%, to four decimal
points, is 0.9070.
Prepared by: Norwin Lederer
Sharp EL733A Business Financial Calculator
Page 4 of 8
Example 3:
o What is the discount factor in the 5th year of an investment where the
interest rate is 15%?
Note: 15% is equal to 0.15 or 15/100.
Keys
Display
1
1
+
1
0.15
0.15
=
1.15
yx
1.15
5
5
=
2.011357187
1/x
0.497176735
Therefore the DCF for the 5th year at an interest rate of 15%, to four decimal
points, is 0.4972 (not the rounding off is upwards, because the fifth digit is
greater than 5).
Prepared by: Norwin Lederer
Sharp EL733A Business Financial Calculator
Page 5 of 8
Topic C: Instalments
Example 1
Consider the following information:
o Purchase price of the car:
R100 000.00
o Interest rate:
13.5%
o Number of years to pay:
5 years
(Known as 'principle')
(Known as 'interest rate' or
'lending rate')
(Known as 'period')
Topic C, Step 1: Clearing the Memory
In order to effectively perform financial calculations the calculator's memory
must be cleared of all data. This is achieved as follows:
0 xÎM and then 2nd F CyCE
Topic C, Step 2: Establish "Financial Mode"
In order to perform financial calculations, the calculator must be in financial
mode. The Sharp EL-733A Business/Financial Calculator has three possible
modes:
o Financial
FIN is displayed on the top of the screen.
o Statistical STAT is displayed on the top of the screen.
o Standard Blank display on the top of the screen.
To establish FIN mode:
2nd F and then Î repeatedly until FIN appears on the display.
Prepared by: Norwin Lederer
Sharp EL733A Business Financial Calculator
Page 6 of 8
Topic C, Step 3: Enter the Data
Keys
Display
100000
100000
+
/-
-100000
PV
-100000
0
0
FV
0
13.5
13.5
2nd F i
1.125
i
1.125
5
5
2nd F n
60
N
60
COMP PMT
2300.984602
Therefore the instalment on a car, where the initial purchase price is
R100 000-00, the interest rate is 13.5% and the number of years is 5 is
R2 003.98.
Example 2
Consider the following information:
o Purchase price of the house: R350 000.00
o Interest rate:
13.5%
o Number of years to pay:
20 years
(Known as 'principle')
(Known as 'interest rate' or
'lending rate')
(Known as 'period')
Topic C, Step 1: Clearing the Memory
In order to effectively perform financial calculations the calculator's memory
must be cleared of all data. This is achieved as follows:
0 xÎM and then 2nd F CyCE
Prepared by: Norwin Lederer
Sharp EL733A Business Financial Calculator
Page 7 of 8
Topic C, Step 2: Establish "Financial Mode"
In order to perform financial calculations, the calculator must be in financial
mode. The Sharp EL-733A Business/Financial Calculator has three possible
modes:
o Financial
FIN is displayed on the top of the screen.
o Statistical STAT is displayed on the top of the screen.
o Standard Blank display on the top of the screen.
To establish FIN mode:
2nd F and then Î repeatedly until FIN appears on the display.
Topic C, Step 3: Enter the Data
Keys
Display
250000
250000
+
/-
-250000
PV
-250000
0
0
FV
0
13.5
13.5
2nd F i
1.125
i
1.125
20
20
2nd F n
240
n
240
COMP PMT
3018.436707
Therefore the instalment on a house, where the initial purchase price is
R250 000-00, the interest rate is 13.5% and the number of years is 20 is
R3 018.44.
Prepared by: Norwin Lederer
Sharp EL733A Business Financial Calculator
Page 8 of 8