Savings; Compounding Periods Different From Payment Periods; Investment Analysis; Lease Vs. Purchase - HP 12c Platinum Reference Manual
Hp 12c platinum: reference guide
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- User manual (288 pages) ,
- Owner's handbook manual (213 pages) ,
- Solutions handbook (166 pages)
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158
Appendix B
Savings
Compounding Periods Different From Payment Periods
C = number of compounding periods per year.
P = number of payment periods per year.
i = periodic interest rate, expressed as a percentage.
r = i / 100, periodic interest rate expressed as a decimal.
i
= ((1 + r / C)
PMT
Investment Analysis
Lease vs. Purchase
PMT
= loan payment for purchase.
p
PMT
= lease payment.
L
I
= interest portion of PMT
n
D
= depreciation for period n.
n
M
= maintenance for period n.
n
T = marginal tax rate.
Net purchase advantage =
Cost of leasing(n) = (1 − T) PMT
Cost of owning(n) = PMT
Break-Even Analysis and Operating Leverage
GP = Gross Profit.
P = Price per unit.
V = Variable costs per unit.
F = Fixed costs.
U = number of Units.
OL = Operating Leverage.
GP = U(P − V) − F
U
=
OL
(
U
P
Profit and Loss Analysis
Net income = (1 − tax) (net sales price − manufacturing expense − operating expense)
Net sales price = list price(1 − discount rate)
where operating expense represents a percentage of net sales price.
C/P
− 1)100
for period n.
p
k
∑
=
n
1
− T(I
p
(
)
−
P
V
)
−
−
V
F
−
cost
of
leasing
(
n
)
(
+
1
i
L
+ D
) + (1 − T)M
n
n
cost
of
owning
(
n
)
)
n
n
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