Texas Instruments BA-2-PLUS Calculator User Manual


 
Cash Flow Worksheet 45
Internal rate of return (IRR) is the interest rate at which the net
present value of the cash flows is equal to 0.
Computing NPV
1. Press ( to display the current discount rate (I).
2. Key in a value and press !.
3. Press # to display the current net present value (
NPV).
4. To compute the net present value for the series of cash flows
entered, press %.
Computing IRR
1. Press ). The IRR variable and current value are displayed (based on
the current cash-flow values).
2. To compute the internal rate of return, press %. The calculator
displays the IRR value.
When solving for IRR, the calculator performs a series of complex,
iterative calculations that can take seconds or even minutes to complete.
The number of possible IRR solutions depends on the number of sign
changes in your cash-flow sequence.
When a sequence of cash flows has no sign changes, no
IRR solution
exists. The calculator displays
Error 5.
When a sequence of cash flows has only one sign change, only one
IRR solution exists, which the calculator displays.
When a sequence of cash flows has two or more sign changes:
At least one solution exists.
As many solutions can exist as there are sign changes.