Calculating Cash Flows - Texas Instruments TI-82 STATS Manual Book

Calculating Cash Flows

Calculating a
Cash Flow
npv(, irr(
14–8 Financial Functions
Use the cash flow functions (menu items
value of money over equal time periods. You can enter unequal
cash flows, which can be cash inflows or outflows. The syntax
descriptions for
npv(
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 for the
npv(
cash inflows and outflows. A positive result for
profitable investment.
interest rate CF0
npv( ,
(internal rate of return) is the interest rate at which the net
irr(
present value of the cash flows is equal to zero.
CF0 CFList[ CFFreq]
irr( , ,
1000
- 2000
and use these arguments.
irr(
2000
- 3000
CFList[ CFFreq]
, , )
)
0
- 2500
and ) to analyze the
7 8
4000
4000
indicates a
npv
5000
3000