HP 12C, User Manual

Page: 81 / 288

Section 4: Additional Financial Functions 81
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
Note: If you change the number in the n register in order to change an N
j
,
be sure to reset the number in the n register to the total number of cash flow
amounts originally entered (not including the amount of the initial investment
CF
0
). If this is not done, NPV and IRR calculations will give incorrect results.
Example 1: With the cash flows now stored in the calculator, change CF
2
from
$11,000 to $9,000, then calculate the new NPV for a 13.5% return.
Keystrokes Display
9000
?
2
9,000.00
Stores the new CF
2
in R
2
.
13.5
¼ 13.50
Stores i .
*
fl
–644.75
The new NPV.
Since this NPV is negative, the investment would decrease the financial value of
the investor’s assets.
Example 2: Change N
5
from 2 to 4, then calculate the new NPV .
Keystrokes Display
5
n 5.00
Stores j in the n register.
4
ga 4.00
Stores the new N
5
.
7
n 7.00
Resets the number in the n register
to its original value.
fl
–1,857.21
The new NPV.
*
This step is necessary in this example because we have calculated IRR since the first time we
calculated NPV . The IRR calculation replaced the 13.5 we keyed into i before calculating
NPV with the result for IRR – 13.72.