HP 12C Financial 0012C-90001, 12C Financial 12C#ABA, 12C Financial F2231AA#ABA ÞgJ, 3ga, 2ga, Year, Year, Display, Example:, 9,100.00, 9,000.00, 4,500.00, Cash Flow, Cash Flow, 14,000.00, 11,000.00, 10,000.00, Keystrokes, –79,000.00

Next cash flow amount. Final cash flow amount.

Next cash flow amount. Next cash flow amount.

Initial investment (with minus sign for a negative cash flow).

First cash flow amount. Next cash flow amount. Next cash flow amount.

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

0.00Clears financial and storage registers.

–79,000.0014,000.0011,000.00

10,000.00

3.00Number of times this cash flow amount occurs consecutively.

9,100.009,000.00

2.00Number of times this cash flow amount occurs consecutively.

4,500.00

100,000.00

7.00Seven different cash flow amounts have been entered.

13.50Stores i.

907.77NPV.

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	Page: 62 of 209
Printered Date: 2005/7/29	Dimension: 14.8 cm x 21 cm