Changing Cash Flow Entries. HP 12C Platinum Financial Calculator, 12c

80 Section 4: Additional Financial Functions

To display all the cash flow amounts and the number of times they occur consecutively:

Keystrokes Display

.

.

.

:ga

:gK

:ga

:gK

:ga

:gK

.

.

.

1.00 N

7

100,000.00

CF

7

1.00 N

6

4,500.00 CF

6

2.00 N

5

9,000.00 CF

5

.

.

.

:ga

:gK

:ga

:gK

7n

1.00 N

1

14,000.00 CF

1

1.00 N

0

–79,000.00

CF

0

7.00 Resets the number in the n register to its original value.

Changing Cash Flow Entries z z

To change a cash flow amount:

1. Key the amount into the display.

2. Press ?.

3. Key in the number of the register containing the cash flow amount to be changed.

To change the number of times a cash flow amount occurs consecutively — that is, to change the N j

for a CF j

:

1. Store the number of that cash flow amount (that is, j) in the n register.

2. Key the number of times the cash flow amount occurs consecutively into the display.

3. Press ga.

File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 80 of 275

Printed Date: 2005/8/1 Dimension: 14.8 cm x 21 cm

Section 4: Additional Financial Functions 81

Note: If you change the number in the n register in order to change an N j

, be sure to reset the number in the n register to the total number of cash flow amounts originally entered (not including the amount of the initial investment

CF

0

). If this is not done, NPV and IRR calculations will give incorrect results.

Example 1: With the cash flows now stored in the calculator, change CF

2

from

$11,000 to $9,000, then calculate the new NPV for a 13.5% return.

Keystrokes Display

9000?2

13.5¼ fl

9,000.00 Stores the new CF

2

in R

2

.

13.50 Stores i. *

–644.75 The new NPV.

Since this NPV is negative, the investment would decrease the financial value of the investor’s assets.

Example 2: Change N

5

from 2 to 4, then calculate the new NPV.

Keystrokes Display

5n

4ga

7n fl

5.00

4.00

Stores j in the n register.

Stores the new N

5

.

7.00 Resets the number in the n register to its original value.

–1,857.21 The new NPV.

* This step is necessary in this example because we have calculated IRR since the first time we calculated NPV. The IRR calculation replaced the 13.5 we keyed into i before calculating

NPV with the result for IRR – 13.72.

File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 81 of 275

Printed Date: 2005/8/1 Dimension: 14.8 cm x 21 cm