Tables and Reference Information A–57
826DEC~1.DOC TI-83 international English Bob Fedorisko Revised: 10/26/05 2:20 PM Printed: 10/27/05 3:09
PM Page 57 of 58
npv CF CF i
i
i
j
S
n
j
N
j
j
() ( )
(( ))
=+ +
−+
−
−
−
=
∑
0
1
1
11
1
where: S
nj
j
j
i
i
j
=
≥
=





=
∑
1
1
00
Net present value is dependent on the values of the initial cash
flow (CF
0
), 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 is dependent on the values of the initial
cash flow (CF
0
) and subsequent cash flows (CFj).
i = I% ÷ 100
4Eff() ( )
()
=× −
×+
100 1
1
e
CP xln
where: x = .01 × NOM ÷ CP
[]
4Nom()
()
=×× −
÷× +
100 1
11
CP e
CP xln
where: x = .01 × EFF
EFF = effective rate
CP = compounding periods
NOM = nominal rate
Cash Flow
Interest Rate
Conversions
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