It’s not too bad…just remember to make your initial CF0 entry negative and your subsequent CFi entries positive.
MLP = Minimum Lease Payment
CF0 = -PV(MLP)
CFi = MLPi
Fi = 1 (this is actually frequency, but to make your life easy, just always enter 1)
CF0 entry should be - [PV(Minimum Lease Payments)] which is given. So you enter -12,208
CF1 entry should be +1683 (corresponding to 2009 in the question - your first payment)
CF2 entry should be +1693 (2010)
And so on…
When you get to “Thereafter” the question says this amount is split each year from 2014 to 2019 at 1586, and then 454 in 2020. So if I were you, write all these out, and enter them like you did for the others.
Once you enter them all …
Click IRR and CPT. It should give you the %. If it says Error 5, its cause you didnt make CF0 negative. Also, as you enter each number, make sure you press “ENTER” at the top of your calc. then it is stored.
If you make a mistake or want to start over, press “2ND” and then “CE|C” (bottom left corner)
Once you get it down, then you can make it easier by using frequency…
GL!
