Tutorial for Users » hp 10bII - Tutorial Varying Cash Flows

# HP10BII Varying Cash Flows

Example1:

What is the PV of the following cash flows if the interest rate is 10%?
Year 1: 1,000    Year 2: 2,000    Year 3: 3,000

Here is the keystrokes to solve the above question:

Remember to setup the calculator first - 1 P/YR.

• Press [Orange Shift] key and [C ALL]  key will display 1 P_Yr
• Enter 0 and press [CFj] Display 0 followed by 0.00
• Enter 1000 and press [CFj] Display 1 followed by 1,000.00
• Enter 2000 and press [CFj] Display 2 followed by 2,000.00
• Enter 3000 and press [CFj] Display 3 followed by 3,000.00
• Enter 10 and press [I/YR] Display 10.0
• Finally press [Orange Shift] key and [NPV] key to obtain the answer.  \$4,816 is displayed as the PV of the varying cash flows for 3 years.

Example 2:

What is the NPV of the following cash flows if the interest rate is 10% and we spent \$4,000 up front to bring about this following varying cash flows at 10%?
Year 1: 1,000   Year 2: 2,000   Year 3: 3,000

Here is the keystrokes to solve the above question:

Remember to setup the calculator first - 1 P/YR.

• Press [Orange Shift] key and [C ALL]  key will display 1 P_Yr
• Enter 4,000 and press [+/-] followed by [CFj] key Display 0 followed by -4,000.00
• Enter 1,000 and press [CFj] Display 0 followed by 0.00
• Enter 2,000 and press [CFj]
• Enter Enter 3,000 and press [CFj]
• Enter 10 and press [I/YR]
• Finally press [Orange Shift] key and [NPV] key to obtain the answer.  \$816 is displayed as the NPV of an cost of \$4,000 and inflow of 3 varying years.

Updated On: 12.05.06

Tagged By: HP 10bII+, HP 10b II.

1. On 23-Jun-2019, Kathy wrote:
You enter into a 5 year net lease with tenant for 2,000 sq. ft. of space. The lease states that you will provide a TI allowance of \$20 per sq. ft. Assume that the TI allowance is used to fund improvements in the tenants space at the beginning of the first year. In return for using the space, the tenant will pay an initial annual rent of \$40 per sq. ft. at the end of the first year of the lease term, with subsequent increases to \$41 per sq. ft. in year 2, \$42 per sq. ft. in year 3, \$43 per sq. ft. in year 4 and \$44 per sq. ft. in year 5. If you want to earn 9% annual rate of return and the tenant reimburses all operating expenses as agreed, what is the nest present value of the future cash flows from this lease per sq. ft.?
• On 07-Aug-2019, Jayne replied:
Hi Kathy, I'm stuck on the same question, did you figure it out? if so, can you kindly assist me? Thanks so much
• On 28-Aug-2019, Liz replied:
did you figure this question out, I too am stuck on it. (Reply)
• On 20-Aug-2019, Anonymous replied:
• On 28-Aug-2019, Liz replied:
• On 15-Sep-2019, Anonymous replied:
147.08

2. On 12-Apr-2018, Amy wrote:
0 cash flow for 10 years, and then 250,000 per year for 25 years, find NPV, what is the key strokes for that.

3. On 12-Apr-2018, Amy wrote:
getting rusty, how about the keys strokes for 10 years no payments and at 11 years, regular payment say, 50,000 a year for 25 years, find the NPV, need to know the key strokes

4. On 05-Feb-2016, Edward Hsu wrote:
How to calculate IRR using HP 10BII:
Initial investment \$60,000, is forecasted to produce variable cash flows each year over a 10-year holding period as followings, and will be sold at the end YR 10 for \$45,000 ?
YR 1 \$10,000
YR 2 \$9,000
YR 3 \$8,000
YR 4 \$7,000
YR 5 \$6,000
YR 6 \$5,000
YR 7 \$4,000
YR 8 \$3,000
YR 9 \$2,000
YR 10\$1,000