HP 12C, User Manual

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74 Section 4: Additional Financial Functions
File name: HP 12c Pt Converted_user's guide_English_HDP0F123E02_080207 Page: 11 of 281
Printed Date: { 2007/8/2Dimension: 14.8 cm x 21 cm
In summary, to enter the cash flow amounts:
1. Press
f
CLEAR
H
to clear the financial and storage registers.
2. Key in the amount of the initial investment, press
Þ
if that cash flow is
negative, then press
gJ
.
3. Key in the amount of the next cash flow, press
Þ
if the cash flow is
negative, then press
gK
. If the cash flow amount is zero in the next
period, press 0
gK
.
4. Repeat step 3 for each cash flow until all have been entered.
With the amounts of the cash flows stored in the calculator’s registers, you can
calculate NPV as follows:
1. Enter the interest rate, using
¼
or
gC
.
2. Press
fl
.
The calculated value of NPV appears in the display and also is automatically
stored in the PV register.
Example: An investor has an opportunity to buy a duplex for $80,000 and
would like a return of at least 13%. He expects to keep the duplex 5 years and
then sell it for $130,000; and he anticipates the cash flows shown in the diagram
below. Calculate NPV to determine whether the investment would result in a return
or a loss.
Note that although a cash flow amount ($4,500) occurs twice, these cash flows
are
not consecutive. Therefore, these cash flows must be entered using the method
described above.
Keystrokes Display
f
CLEAR
H 0.00
Clears financial and storage
registers.
80000
ÞgJ –80,000.00
Stores CF
0
(with minus sign for a
negative cash flow).