Texas Instruments Calculator - Manual (Page 92)

88 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
).
where:
i
is the periodic interest rate used in the calculation of NPV.
where: is the frequency of the
k
th
cash flow.
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
÷ 100
The calculator uses this formula to compute the modified internal rate of
return:
where:
positive
= positive values in the cash flows
negative
= negative values in the cash flows
N
= number of cash flows
rrate
= reinvestment rate
frate
= finance rate
NPV
(values, rate) = Net present value of the values in the rate
described
NFV 1 i + ( )
p
NPV × =
p n
k
k 1 =
N
∑
=
n
k
MOD
NPV (positive, rrate –
NPV (negative, frate)
-----------------------------------------------------
1 N ⁄
1 rrate + ( ) 1 – Ч =