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- Topic: Calculate Discounted payback period with HP12C
| Author | Topic: Calculate Discounted payback period with HP12C |
|---|---|
| spillo @2014-05-09 21:05:28 |
Anyone know what I have to input in order to calculate the discounted payback period with a HP12C? Thanks for your help. |
| Gabilucho @2014-05-11 20:42:43 |
I hope I'm not late, anyway it' worth for someone else. You can calculate NPV, if it's positive delete the last CF and calculate again, and so on until you get a negative NPV, then you know that between those years you reach the DPP. when you come up with a negative NPV you have to add that NPV with the last positive you got, that will give you the discounted CF of the last positive CF that turns a negative NPV into a positive NPV. Finally you have to divide the last negative NPV by this CF and you'll get the proportion of the year you need to reach the DPP. |
CFA Discussion Topic: Calculate Discounted payback period with HP12C
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