HP 12c User Manual page 60

60 Section 4: Additional Financial Functions
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
fCLEARH
80000ÞgJ
500ÞgK
4500gK
5500gK
4500gK
130000gK
:n
13¼
fl
Since NPV is positive, the investment would increase the financial value of the
investor's assets.
File name: hp 12c_user's guide_English_HDPMBF12E44
Printered Date: 2005/7/29
Display
0.00
Clears financial and storage registers.
–80,000.00
Stores CF (with minus sign for a
0
negative cash flow).
–500.00
Stores CF (with minus sign for a
1
negative cash flow).
4,500.00
Stores CF .
2
5,500.00
Stores CF .
3
4,500.00
Stores CF .
4
130,000.00
Stores CF .
5
5.00
Checks number of cash flow amounts
entered (in addition to CF
13.00
Stores i.
212.18
NPV.
Page: 60 of 209
Dimension: 14.8 cm x 21 cm
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