76 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 amounts of the cash flows and the number of times they
occur consecutively:
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. If the initial investment consists of more than one cash flow of the amount
entered in step 2, key in the number of those cash flows, then press
ga
. If
ga
is not pressed, the calculator assumes that
N
0
is 1.
4. Key in the amount of the next cash flow, press
Þ
if that cash flow is
negative, then press
gK
. If the cash flow amount is zero in the next
period, press 0
gK
.
5. If the amount entered in step 4 occurs more than once consecutively, key in
the number of times that cash flow amount occurs consecutively, then press
ga
. If
ga
is not pressed, the calculator assumes that
N
j
is 1 for the
CF
j
just entered.
6. Repeat steps 4 and 5 for each
CF
j
and
N
j
until all cash flows have been
entered.
With the amounts of the cash flows and the number of times they occur
consecutively stored in the calculator,
NPV
can be calculated by entering the
interest rate and pressing
fl
, just as described earlier.
Example:
An investor has an opportunity to purchase a piece of property for
$79,000; and he would like a 13.5% 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 Cash
Flow Year 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.
Summary of Contents for 12C
Page 1: ...HP 12c Platinum Financial Calculator User s guide H Edition 5 HP part number F2231AA 90001 ...
Page 15: ...Part I Problem Solving ...
Page 48: ...48 Section 3 Basic Financial Functions ...
Page 104: ......
Page 105: ...Part II Programming ...
Page 156: ......
Page 157: ...Part III Solutions ...
Page 230: ......
Page 231: ...Appendices ...
Page 277: ......