HP 12c Platinum Reference Manual page 17

Program Instructions:
1. Press g and press fCLEARH.
2. Key in loan values:
Key in annual interest rate and press gC
●
Key in principal to be paid and press $
●
Key in monthly payment and press ÞP
●
(If any of the values are not known, they should be solved for.)
3.
Key in Potential Gross Income (PGI) and press ?2.
4.
Key in Operational cost and press ?3.
5. Key in depreciable value and press ?4.
6. Key in depreciable life and press ?5.
7. Key in factor (for declining balance only) and press ?6.
8. Key in the Marginal Tax Rate (as a percentage) and press ?7.
9. Key in the growth rate in Potential Gross Income (0 for no growth) and press
?8.
10. Key in the growth rate in operational cost (0 if no growth) and press ?9.
11.
Key in the vacancy rate (0 for no vacancy rate) and press ?.0.
12. RPN: Key in the desired depreciation function at line 032 in the program.
12. ALG: Key in the desired depreciation function at line 026 in the program.
13. Press t to compute ATCF. The display will pause showing the year and then
will stop with the ATCF for that year. The Y-register contains the year.
14. Continue pressing t to compute successive After-Tax Cash Flows.
Example 1: A triplex was recently purchased for $100,000 with a 30 year loan at 12.25%
and a 20% down payment. Not including a 5% annual vacancy rate, the potential gross
income is $9,900 with an annual growth rate of 6%. Operating expenses are $3,291.75
with a 2.5% growth rate. The depreciable value is $75,000 with a projected useful life of
$20 years. Assuming a 125% declining balance depreciation, what are the After-Tax Cash
Flows for the first 10 years if the investors Marginal Tax Rate is 35%?
12c platinum / 12C
RPN Keystrokes
gÂ
fCLEARH
100000\
20b-$
12.25gC
30gA
P
9900?2
12c platinum
ALG Keystrokes
gÂ
fCLEARH
100000-
20b$
12.25gC
30gA
PP
9900?2
Display
Mortgage amount.
80,000.00
Monthly interest rate.
1.02
Mortgage term.
360
Monthly payment.
-838.32
Potential Gross Income.
9,900.00
Real Estate 17
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