Victor Technology V12 - Manual (Page 24)

V I C T O R T E C H N O L O G Y
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when some of the cash flows are repetitive and consecutive. In these
situations, the Nj key is invoked by entering the number of repeat cash flows
followed by
. r Nj . For example, if a cash flow of $1000 occurs 5 times in a
row, the entries would be 5000 CHS r CFj 5 r Nj .
Example: A landlord buys and rents a building to a tenant for 8 years. The
landlord pays $500,000 for the building and rents the building for a net cash
flow of $60,000 for the first year, $100,000 per year for 3 years and $120,000
per year for the next 4 years. In the 9
th year, the landlord expects to sell the
property for $400,000. The landlord’s desired rate of return is 15% per year.
What is the NPV of this investment?
Example
ENTRIES (RPN) DISPLAY
. b REG
0.00
Clears the storage and financial registers.
500000 CHS r CFo
-500,000.00
Displays -$500,000 as the initial cash flow.
60000 r CFj
60,000.00
Displays $60,000 as the year 1 cash flow.
100000 r CFj
100,000.00
Displays $100,000 as the year 2 cash flow.
3 r Nj
3.00
Displays the number of consecutive times the
$100,000 cash flow will occur.
120000 r CFj
120,000.00
Displays $120,000 as the year 5 cash flow.
4 r Nj
4.00
Displays the number of consecutive times the
$120,000 cash flow will occur.
400000 r CFj
400,000.00
Displays $400,000 as the final cash flow amount
15 i .
15.00
Displays the 15% desired rate of return
RCL n .
4.00
Displays the number of unique cash flow amounts
entered