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Bakes2
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Net Present Value

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HP 10b ii

I’m trying to calculate NPV for a Finance Lease with cash outflows of £200,000 on day 1, followed by 60 monthly cash inflows of £3,800 with interest at 5.5% compounded monthly. This always returns a negative NPV but I can’t understand why. Any help?

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Huffer
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I also get a negative number. You have $200,000 going out immediately and it takes 4+ years to break even without interest so you are running interest on a negative value for 4+ years...in other words if you need to earn 5.5% on your money this is a bad deal. 

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Maké
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Hi!, Bakes2 :

You can, see ...

https://support.hp.com/us-en/document/bpia5076

http://www.tvmcalcs.com/index.php/calculators/hp10bii/hp10bii_page3 (example 4)

https://www.educalc.net/1246481.page

Kind Regards !.
Have a nice day !.
@Maké (Technical Advisor Premium - HP Program Top Contributor).
Provost in HP Spanish Public Forum ... https://h30467.www3.hp.com/
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Bakes2
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Thanks for your help

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