HP12C - Internal Rate of Return



#6

I no longer have my owner's manual and now need to info on how to calculate IRR for irregular cash flows.


#7

Initial investment $10000
Cash Flows: Year 1 $5000 Year 2 $4000 Year 3 $3000

Clear the financial registers.

10000 CHS g CFo
5000 g CFj
4000 g CFj
3000 g CFj

f IRR

10.65%


#8

In addition to what Gene has said, if any consecutive set of cash flows are equal, you can use the Nj function to specify how many times the flow repeats. Extending on Gene's example, suppose that there were flows in years 4, 5, and 6 that were all equal to the $3000 flow in year 3, then instead of keying these in individually, you can just type "4 g Nj" just before the "f IRR" keystrokes. The 4 signifies 4 payments of $3000 corresponding to the four years (3, 4, 5, 6).

Apart from saving some keystrokes, this method also saves on memory registers. Basically, you only use one memory slot for a repeated flow. Somehow, the HP engineers have stored the value of Nj (which can be as large as 99) in some spare bits inside the calculator, probably in the bits in the memory register which holds the payment itself.


#9

Quite correct!

One can also see an example from my business math textbook that uses the HP-12c...

http://www.rskey.org/gene/hpgene/book.html

#10

Hi,

You can download and read the manual of HP 12C Platinum at:

http://h20015.www2.hp.com/content/common/manuals/bpia5309/bpia5309.pdf

The way to use of HP 12C is mostly similar with HP 12C Platinum (in PRN mode).

Good luck!!!

Luc - Vietnam


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