Net present value depends on the values of the initial cash flow (
),
CF 0
subsequent cash flows (
CF j
), frequency of each cash flow (
n j
), and the
specified interest rate (
).
i
= 100 ×
IRR
i
, where i satisfies
npv
() = 0
Internal rate of return depends on the values of the initial cash flow
(
) and the subsequent cash flows (
).
CF 0
CF j
÷ 100
=
i
I/Y
86
Appendix — Reference Information