More About L - HP 0012C-90001 User Manual

12c financial calculator
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More About L

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Given a sequence of positive and negative cash flows, we hope that there is
enough information to determine whether an
answer is. For the vast majority of cases, your hp 12c will find the unique
answer if it exists. But the
sequence does not meet certain criteria, then sometimes the calculator is unable to
determine whether or not an answer or answers exist.
Let's look at all of the possible outcomes of
Case 1: A positive answer. If a positive answer is displayed, it is the only such
Case 1:
Case 1:
Case 1:
answer. One or more negative answers may also exist.
Case 2: A negative answer. If a negative answer is displayed, there
Case 2:
Case 2:
Case 2:
additional negative answers, and there
additional answers (negative or positive) exist, they can be calculated using the
procedure described below.
Case 3: The calculator displays Error
Case 3:
Case 3:
Case 3:
complex, possibly involving multiple answers, and cannot be continued until you
give the calculator an estimate of
below.
Case 4: The calculator displays Error 7
Case 4:
Case 4:
Case 4:
IRR
the computation of
is probably the result of a mistake in entering the magnitudes or signs of the cash
flows or the number of times a cash flow amount occurs consecutively. Refer to
Reviewing Cash Flow Entries (page 64) and Changing Cash Flow Entries (page
65) to check and correct the entries. Error 7
and
positive cash flow
Although the calculator will eventually reach one of the above outcomes, it may
take a long time to get there. You may wish to terminate the
by pressing any key, to see what interest rate the calculator has computed at that
point. If you stop the calculation, you may continue searching for
below.
Searching for IRR. You can continue searching for IRR solutions, even after an Error
Searching for IRR.
Searching for IRR.
Searching for IRR.
3 3 3 3 indication, as follows:
1. Make a guess for the interest rate and key it in.
2. Press:gt.
Appendix B
IRR
computation is so complex that if the cash flow
IRR
may
Error 3 3 3 3 . This indicates that the computation is very
Error
Error
IRR
. The procedure for doing so is described
Error 7. This indicates that there is no answer to
Error 7
Error 7
with the cash flow amounts you have entered. This situation
Error 7 will result if there is not at least one
Error 7
Error 7
at least one negative cash flow.
179
179
179
179
L
L
L
IRR
answer exists, and what that
as calculated by your hp 12c:
be a single positive answer. If
IRR
iterative process,
IRR
IRR
may
be
as described
Error
Error
Error

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