HP 12c Platinum - Page 59

Section 4: Additional Financial Functions 61
Since NPV is positive, the investment would increase the financial value of the
investor’s assets.
Calculating NPV for Grouped Cash Flows. A maximum of 30 cash flow
amounts (in addition to the initial investment CF
0
) can be stored in the HP 12C
Platinum.
15
However, problems involving more than 30 cash flows can be
handled if among the cash flows there are equal consecutive cash flows. For such
problems, you merely enter along with the amounts of the cash flows the number
of times – up to 99 – each amount occurs consecutively. This number is
designated N
j
, corresponding to cash flow amount CF
j
, and is entered using the
a key. Each N
j
is stored in a special register inside the calculator.
This method can, of course, be used for problems involving fewer than 30 cash
flows – and it will require fewer storage registers than the method described
above under Calculating NPV for Ungrouped Cash Flows. Equal consecutive
cash flows can be entered using that method – provided there are enough storage
registers available to accommodate the total number of individual cash flows.
The facility of grouping equal consecutive cash flows is provided to minimize
the number of storage registers required.
Note: When entering cash flow amounts – including the initial investment
CF
0
– remember to observe the cash flow sign convention by pressing
Þ after keying in the amount for a negative cash flow.
In summary, to enter the amounts of the cash flows and the number of times they
occur consecutively:
1. Press fCLEARH to clear the financial and storage registers.
2. Key in the amount of the initial investment, press Þ if that cash flow is
negative, then press gJ.
Note: The initial investment can not be zero.
4500gK
4,500.00
Stores CF
4
.
130000gK
130,000.00
Stores CF
5
.
:n
5.00
Checks number of cash flow
amounts entered (in addition to
CF
0
.
13¼
13.00
Stores i.
fl
212.18
NPV.
15.
If you have stored a program in the calculator, the number of registers available for storing
cash flow amounts may be less than 31.
Keystrokes (Cont.) Display