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- Topic: HP 12C: Calculate payback period??
| Author | Topic: HP 12C: Calculate payback period?? |
|---|---|
| otavio @2018-12-07 13:02:55 |
How do you find the payback period using the HP 12C? For example, I invest $50,000 and have cash inflows of $20,000, $15,000, and $30,000 in years 1, 2, 3. What's the payback period? I've scoured the internet - someone please help! |
| Uruz713 @2018-01-11 15:02:55 |
Don't know about using the calculator for this, but it's easy to do by hand. t0 CF0=-50,000 t1 CF1=20,000 t2 CF2=15,000 t3 CF3=30,000 Cumulative cash flows t0 = -50,000 t1 = -30,000 t2 = -15,000 t3 = 15,000 payback period = 2 + 15,000/30,000 = 2.5 years The numerator is the remaining balance in t2. The denominator is the cash flow received in t3. And you basically assume $15,000 out of the $30,000 is received halfway through the year. |
| leryan @2018-12-09 04:34:35 |
Hi, I have the same question and I have googled several variations of this questions without finding an answer, anyone has and answer please? I really don't feel like using the Texas. Thanks. |
CFA Discussion Topic: HP 12C: Calculate payback period??
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