![]() Had you entered the $100 as a positive number no harm would have been done, but the answer would have been returned as a negative number. In this problem, the $100 was an investment (i.e., a cash outflow) and the future value of $161.05 would be a cash inflow in five years. Cash inflows are entered as positive numbers and cash outflows are entered as negative numbers. This is simply a way of keeping the direction of the cash flow straight. Most financial calculators (and spreadsheets) follow the Cash Flow Sign Convention.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |