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Tables and Reference Information A-57
8399APXA.DOC TI-83 international English Bob Fedorisko Revised: 02/19/01 1:25 PM Printed: 02/19/01 1:40 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
4
Eff
() ( )
()
=× −
×+
100 1
1
e
CP xln
where:
x
= .01
×
NOM
÷
CP
[]
4
Nom
()
()
=×× −
÷× +
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