Chapter 14: Applications 398
npv(, irr(
npv(, irr(npv(, irr(
npv(, irr(
npv( (net present value) is the sum of the present values for the cash inflows and
outflows. A positive result for
npv indicates a profitable investment.
npv(interest rate,CF0,CFList[,CFFreq])
irr(
(internal rate of return) is the interest rate at which the net present value of the cash
flows is equal to zero.
irr(CF0,CFList[,CFFreq])
1000
-2000
-2500
050003000
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