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Texas Instruments BA II PLUS User Manual

Page 90

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86

Appendix — Reference Information

Net present value depends on the values of the initial cash flow (

CF0

),

subsequent cash flows (

CFj

), frequency of each cash flow (

nj

), and the

specified interest rate (

i

).

IRR

= 100

×

i

, where i satisfies

npv

() = 0

Internal rate of return depends on the values of the initial cash flow
(

CF0

) and the subsequent cash flows (

CFj

).

i

=

I/Y

ч 100