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Appendix B: Reference Information 639
Cash Flow
Cash FlowCash Flow
Cash Flow
where:
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
Interest Rate Conversions
Interest Rate ConversionsInterest Rate Conversions
Interest Rate Conversions
4
Eff =
where:
x
=
.01 × Nom ÷ CP
npv( ) CF
0
CF
j
1 i+()
-
S
j
1–
11i+()
-
n
j
–()
i
-----------------------------------
j 1=
N
∑
+=
S
j
n
i
i 1=
j
∑
j 1≥
0 j 0=
⎩
⎪
⎪
⎨
⎪
⎪
⎧
=
100 (e
CP x 1+()ln×
1)–×