Texas Instruments BA II Plus - Computing NPV and IRR

66 BA II PLUS™ Calculator
Computing NPV and IRR
IRR
(internal rate of return) is the interest rate at which the net
present value of the cash flows is equal to zero.
NPV
(net
present value) is the sum of the present values for the cash
inflows (cash received) and outflows (cash paid out).
A positive value for
NPV
indicates a profitable investment.
Procedure: Computing Net Present Value
쐃
Press
(
.
Z
=
and its current value are displayed.
쐇
Key in a value for
Z
(discount rate) and press
!
.
쐋
Press
#
to display the
NPV
variable label.
쐏
Press
%
to compute the net present value of the series of
cash flows.
The calculator computes and displays the value.
Procedure: Computing Internal Rate of Return
쐃
Press
)
.
IRR=
and its current value are displayed.
쐇
Press
%
to compute the internal rate of return. The
calculator computes and displays the value.