HP HP12C hp 12c_user's guide_English_E_HDPMBF12E44.pdf - Page 62

62 Section 4: Additional Financial Functions Example: An investor has an opportunity to purchase a piece of property for $79,000; and he would like a 131/2% return. He expects to be able to sell it after 10 years for $100,000 and anticipates the yearly cash flows shown in the table below: Year Cash Flow Year Cash Flow 1 $14,000 6 $9,100 2 $11,000 7 $9,000 3 $10,000 8 $9,000 4 $10,000 9 $4,500 5 $10,000 10 $100,000 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 fCLEARH 79000ÞgJ 14000gK 11000gK 10000gK 3ga 9100gK 9000gK 2ga 4500gK 100000gK :n 13.5¼ fl Display 0.00 -79,000.00 Clears financial and storage registers. Initial investment (with minus sign for a negative cash flow). 14,000.00 First cash flow amount. 11,000.00 10,000.00 3.00 9,100.00 Next cash flow amount. Next cash flow amount. Number of times this cash flow amount occurs consecutively. 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 i. 907.77 NPV. Since NPV is positive, the investment would increase the financial value of the investor's assets by $907.77. File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 62 of 209 Dimension: 14.8 cm x 21 cm