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.