Education Technology

Solution 11941: Computing Net Present Value (NPV) and Internal Rate of Return (IRR) Using a TI-83 Family, TI-84 Plus, or TI-Nspire™ Handheld in TI-84 Plus Mode.

How do I compute NPV and IRR using a TI-83 family, TI-84 Plus family, or TI-Nspire handheld in TI-84 Plus mode?                    

The following examples will demonstrate how to compute NPV and IRR.

Example:
Initial cash flow is -9
Interest rate is 7%

CF1 = 5
Frequency = 2
CF2 = -4
Frequency = 3
CF3 = 6
Frequency = 5

What is the NPV and IRR?

Solution:
First, input the cash flow and frequency values into lists.
• Press [STAT] [ENTER] to enter the list editor.
• Input CF1-CF3 into L1 and the corresponding frequency values in L2.

Calculate NPV:

• Press [2ND][QUIT]
• Press [APPS] [ENTER] [7]. (On the TI-83, press [2nd] [FINANCE] [7].)
• Input the interest rate, initial cash flow, L1, L2.
• The display will show npv(7,-9, L1, L2), press ENTER to get the answer.

Calculate IRR:

• Press [APPS] [ENTER] [8]. (On the TI-83, press [2nd] [FINANCE] [8])
• Input the initial cash flow, L1, L2.
• The display will show irr(-9, L1, L2) press [ENTER] to display the result.

Please see the TI-83 family and TI-84 Plus family guidebooks for additional information.

Please Note: TI-Nspire handheld in TI-84 Plus mode users may refer to the TI-84 Plus family guidebook.