Calculating Cash Flows - Texas Instruments TI-83 Manual Book

Calculating Cash Flows

Calculating a
Cash Flow
npv(, irr(
14-8 Financial Functions
Use the cash flow functions (menu items
analyze the value of money over equal time periods. You
can enter unequal cash flows, which can be cash inflows or
outflows. The syntax descriptions for
these arguments.
interest rate is the rate by which to discount the cash
flows (the cost of money) over one period.
CF0 is the initial cash flow at time 0; it must be a real
number.
CFList is a list of cash flow amounts after the initial
cash flow CF0.
CFFreq is a list in which each element specifies the
frequency of occurrence for a grouped (consecutive)
cash flow amount, which is the corresponding element
of CFList. The default is 1; if you enter values, they
must be positive integers < 10,000.
For example, express this uneven cash flow in lists.
2000
2000
CF0 =
2000
CFList =
{2000,L3000,4000}
CFFreq =
{2,1,2}
(net present value) is the sum of the present values
npv(
for the cash inflows and outflows. A positive result for
indicates a profitable investment.
interest rate CF0
npv( ,
(internal rate of return) is the interest rate at which the
irr(
net present value of the cash flows is equal to zero.
CF0 CFList[ CFFreq]
irr( , ,
1000
- 2000
npv(
2000
- 3000
CFList[ CFFreq]
, , )
)
0
- 2500
and ) to
7 8
and use
irr(
4000
4000
npv
5000
3000