HP 0012C-90001, User Manual

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62 62 62 62 Section 4: Section 4: Section 4: Section 4: Additional Financial Functions Additional Financial Functions Additional Financial Functions Additional Financial Functions
File name: HP 12c+_user's guide_English_E_HDP0F12AE03_062608 - Modified.doc Page: 62 of 213
Printed Date: 2021/6/16 Dimension: 14.8 cm x 21 cm
Example:
Example: Example:
Example: An investor has an opportunity to purchase a piece of property for
$79,000; and he would like a 13
1
/
2
% return. He expects to be able to sell it after
10 years for $100,000 and anticipates the yearly cash flows shown in the table
below:
Year Year Year Year Cash Flow Cash Flow Cash Flow Cash Flow Year Year Year Year Cash Flow Cash Flow Cash Flow Cash Flow
1
2
3
4
5 $14,000
$11,000
$10,000
$10,000
$10,000 6
7
8
9
10
$9,100
$9,000
$9,000
$4,500
$100,000
Since two cash flow amounts ($10,000 and $9,000) are repeated consecutively,
we can minimize the number of storage registers required by using the method just
described.
Keystrokes
Keystrokes Keystrokes
Keystrokes Display
Display Display
Display
f CLEAR H 0.00 Clears financial and storage
registers.
79000 ÞgJ –79,000.00 Initial investment (with minus sign for
a negative cash flow).
14000
gK 14,000.00
First cash flow amount.
11000
gK
11,000.00 Next cash flow amount.
10000
gK 10,000.00
Next cash flow amount.
3
ga
3.00 Number of times this cash flow
amount occurs consecutively.
9100
gK
9,100.00 Next cash flow amount.
9000
gK 9,000.00
Next cash flow amount.
2
ga
2.00 Number of times this cash flow
amount occurs consecutively.
4500
gK
4,500.00 Next cash flow amount.
100000
gK 100,000.00
Final cash flow amount.
:w
7.00 Seven different cash flow amounts
have been entered.
13.5
¼
13.50 Stores
i.
fl
907.77 NPV
.
Since NPV is positive, the investment would increase the financial value of the
investor’s assets by $907.77.