Texas Instruments BA II PLUS - Manual (Page 52)

48 Cash Flow Worksheet
Computing NPV
Use an interest rate per period ( I ) of 20%.
Answers: NPV is $7,266.44.
Computing IRR
Answer: IRR is 52.71%.
Example: Value of a Lease with Uneven Payments
A lease with an uneven payment schedule usually accommodates
seasonal or other anticipated fluctuations in the lessee’s cash position.
A 36-month lease has the following payment schedule and beginning-of-
period payments.
If the required earnings rate is 10% per 12-month period with monthly
compounding:
• What is the present value of these lease payments?
To Press Display
Access interest rate variable ( I= 0.00
Enter interest rate per period. 20 ! I= 20.00 
Compute net present value. # % NPV= 7,266.44 
To Press Display
Access IRR . ) IRR= 0.00
Compute internal rate of return. # % IRR=
52.71

Number of Months Payment Amount
4 $0
8 $5000
3 $0
9 $6000
2 $0
10 $7000