HP 12C Financial 0012C-90001, 12C Financial 12C#ABA, 12C Financial F2231AA#ABA ÞgJ, ÞgK, Display, –500.00, Example:, 4,500.00, 5,500.00, 4,500.00, Keystrokes, –80,000.00, 130,000.00 Stores CF5

Stores CF1 (with minus sign for a negative cash flow).

Stores CF2.

Stores CF3.

Stores CF4.

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

Display

0.00Clears financial and storage registers.

–80,000.00Stores CF0 (with minus sign for a negative cash flow).

–500.00

4,500.00

5,500.00

4,500.00

130,000.00 Stores CF5.

5.00Checks number of cash flow amounts entered (in addition to CF0 ).

13.00Stores i.

212.18NPV.

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	Page: 60 of 209
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