HP 12C Financial calculator - Manual (Page 60)

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