(11C) Purchase or Lease

[Gamo]

Dieter
Yes that correct.

Here is another example from 12C Owner's Handbook on page 62
This example is not about purchase or lease matter.
Below example show how to input data.

An investor has an opportunity to purchase a piece of property for 79,000;
and he would like 13.5% return. He expects to be able to sell it after 10 years

for 100,000 and anticipates the yearly cash flows in the table below:

Year Cash Flow
1 14,000
2 11,000
3 10,000
4 10,000
5 10,000
6 9,100
7 9,000
8 9,000
9 4,500
10 100,000

Keystrokes: FIX 2

79000 [CHS] [A] display 79000.00 // Initial Investment
13.5 [B] display 13.50 // Interest
14000 [D] display -66665.20
11000 [D] display -58126.32
3 [C] 10000 [D] display -39952.08 // 3 [C] is three continue identical cash flows
9100 [D] display -35695.45
2 [C] 9000 [D] display -28718.37 // 2[C] is two continue identical cash flows
4500 [D] display -27278.75
100000 [D] display 907.77 // Last cash flow show final result of NPV

[E] display 10 // check for how many cash flows this case is 10 Cash Flows

NPV is 907.77

Since NPV is positive, the investment would increase the financial value
of the investor's assets by 907.77

Gamo