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Section 4: Additional Financial Functions 61
File name: hp 12c_user's guide_English_HDPMBF12E44 Page: 61 of 209
Printered Date: 2005/7/29 Dimension: 14.8 cm x 21 cm
Calculating
NPV
for Grouped Cash Flows.
A maximum of 20 cash flow
amounts (in addition to the initial investment CF
0
) can be stored in the hp 12c.
*
However, problems involving more than 20 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 20 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. If there is no initial investment, press 0gJ.
3. If the initial investment consists of more than one cash flow of the amount
entered in step 2, key in the number of those cash flows, then press ga. If
ga is not pressed, the calculator assumes that N
0
is 1.
4. Key in the amount of the next cash flow, press Þ if that cash flow is
negative, then press gK. If the cash flow amount is zero in the next
period, press 0gK.
5. If the amount entered in step 4 occurs more than once consecutively, key in
the number of times that cash flow amount occurs consecutively, then press
ga. If ga is not pressed, the calculator assumes that N
j
is 1 for the CF
j
just entered.
6. Repeat steps 4 and 5 for each CF
j
and N
j
until all cash flows have been
entered.
With the amounts of the cash flows and the number of times they occur
consecutively stored in the calculator, NPV can be calculated by entering the
interest rate and pressing
fl
, just as described earlier.
*
If you have stored a program in the calculator, the number of registers available for storing
cash flow amounts may be less than 21.