HP 0012C-90001 User Manual page 62

62 62 Section 4: Additional Financial Functions Section 4: Additional Financial Functions
62 62 Section 4: Section 4: Additional Financial Functions Additional Financial Functions
Example: Example: An investor has an opportunity to purchase a piece of property for Example: Example:
$79,000; and he would like a 13
10 years for $100,000 and anticipates the yearly cash flows shown in the table
below:
Year Year
Year Year
1
2
3
4
5
Since two cash flow amounts ($10,000 and $9,000) are repeated consecutively,
we can minimize the number of storage registers required by using the method just
described.
Keystrokes Keystrokes Keystrokes Keystrokes
fCLEARH
79000ÞgJ
14000gK
11000gK
10000gK
3ga
9100gK
9000gK
2ga
4500gK
100000gK
:w
13.5¼
fl
NPV
Since is positive, the investment would increase the financial value of the
investor's assets by $907.77.
1
/ % return. He expects to be able to sell it after
2
Cash Flow Cash Flow Year Year
Cash Flow Cash Flow Year Year
$14,000 6
$11,000 7
$10,000 8
$10,000 9
$10,000 10
Display Display Display Display
0.00
Clears financial and storage
registers.
–79,000.00 Initial investment (with minus sign for
a negative cash flow).
14,000.00 First cash flow amount.
11,000.00
Next cash flow amount.
10,000.00
Next cash flow amount.
3.00
Number of times this cash flow
amount occurs consecutively.
9,100.00 Next cash flow amount.
9,000.00 Next cash flow amount.
2.00
Number of times this cash flow
amount occurs consecutively.
4,500.00
Next cash flow amount.
100,000.00
Final cash flow amount.
7.00
Seven different cash flow amounts
have been entered.
13.50
Stores
907.77 NPV
Cash Flow Cash Flow
Cash Flow Cash Flow
$9,100
$9,000
$9,000
$4,500
$100,000
i.
.