14-8 Financial Functions
8314FINA.DOC TI-83 international English Bob Fedorisko Revised: 02/19/01 12:50 PM Printed: 02/19/01 1:38 PM
Page 8 of 14
Use the cash flow functions (menu items
7
and
8
) to
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
npv(
and
irr(
use
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
4000
2000
2000
- 3000
4000
CF0
=
2000
CFList
=
{2000,
L
3000,4000}
CFFreq
=
{2,1,2}
npv(
(net present value) is the sum of the present values
for the cash inflows and outflows. A positive result for
npv
indicates a profitable investment.
npv(
interest rate
,
CF0
,
CFList
[
,
CFFreq
]
)
irr(
(internal rate of return) is the interest rate at which the
net present value of the cash flows is equal to zero.
irr(
CF0
,
CFList
[
,
CFFreq
]
)
3000
5000
1000
- 2000
- 2500
0
Calculating Cash Flows
Calculating a
Cash Flow
npv(, irr(
