NPV Problem on my new 10bII

Brian wrote:

I am facing problem with the calculation of NPV on my new 10bII.

For example to calculate NPV of the following cash flows: - -240,000 + 200,000 / 1.08 + 100,000 / (1.08)2 + 20,000 / (1.08)3

I should get and did get the answer +46796 when I used the calculator. But yesterday I noticed the calculation was wrong and I got 76,960.65 instead.

These were what I keyed in:-

Shift c all

240000 (+ / -) CFj

200,000 CFj

100,000 CFj

20,000 CFj

8 I / YR

Shift NPV

Answer I got is 76,960.65 which is wrong.

Previously when I did the above calculation following the same process, I got the correct answer. I think there is something wrong. When I checked this against the slower method of working out each discounted rate for each cash flow, I got the correct answer 46796. Why?

---

Answer:

Hi Brian,

You need to set the P / YR to 1. The default is 12.

1 Shift P / Yr

Shift c all "Screen should display 1"

240000 (+ / -) CFj

200,000 CFj

100,000 CFj

20,000 CFj

8 I / YR

Shift NPV "Screen should display 46,795.71"

Here is a primer to setting up your HP 10bII.