NPV and the HP-12c

CFA Level I
#1

I can’t seem to get the same NPV calculations with the HP-12c as the examples in the CFA text or what I get with equivalent inputs in Excel. Specifically, I’m referring to the present values of operating leases (example 14, p668 of FSA). Here are my inputs: 10+g+CF0 18+g+CFj 22+g+CFj 25+g+CFj 25+g+CFj 25+g+CFj 25+g+CFj The answer’s 100.04 but my stupid 12c keeps spitting out 110.04. I really hate this calculator…

#2

You have to press 10i - to plug in the discount rate and then f NPV I get 110.038

#3

Are you putting in your original cash flow as negative if it is? Edit: sp

#4

nope, positive… keep getting the same answer as dlo

#5

I don’t have to book with me here. What is the discount rate suggested? I assumed it was 10%, bcse I got the same answer as you. But maybe it’s different than 10%. Otherwise, I think the CFo should be negative.

#6

figured it out: the $10 CF gets counted as CFj while 0 is CF0 I’m an idiot.

#7

With a name like gtg414g, there is no way you’re an idiot (jk, he’s in my masters program).

#8

hahaha…

#9

Use the Nj key!