Texas Instruments Calculator User Manual page 92

Net present value depends on the values of the initial cash flow (
subsequent cash flows (
specified interest rate (
(
= +
NFV 1 i
i
where: is the periodic interest rate used in the calculation of NPV.
∑
=
p
k
where:
= 100 ×
IRR i
, where i satisfies
Internal rate of return depends on the values of the initial cash flow
CF 0
( ) and the subsequent cash flows (
÷ 100
i
=
I/Y
The calculator uses this formula to compute the modified internal rate of
return:
– NPV (positive, rrate
---------------------------------------------------- -
MOD =
NPV (negative, frate)
positive
where:
negative
N
= number of cash flows
rrate
= reinvestment rate
frate
= finance rate
NPV
(values, rate) = Net present value of the values in the rate
described
88
CF j
), frequency of each cash flow (
i
).
p
) ×
NPV
N
n
k
=
1
n
is the frequency of the
k
npv
= positive values in the cash flows
= negative values in the cash flows
th
k
cash flow.
() = 0
CF j
).
⁄
1 N
× (
1 + rrate
Appendix — Reference Information
CF 0
n j
), and the
) 1
–
),