Education Technology

Solution 34772: Computing Net Present Value (NPV) and Internal Rate of Return (IRR) on the TI-83 Plus and TI-84 Plus Family of Graphing Calculators. 

How do I compute NPV and IRR on the TI-83 Plus and TI-84 Plus family of graphing calculators?

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.
• Press [5] [ENTER] [(-)] [4] [ENTER] [6].
• Press [►].
• Press [2] [ENTER] [3] [ENTER] [5] [ENTER].

Calculate NPV:

• Press [2ND][QUIT].
• Press [APPS] [ENTER] [7].
• Press [7] [,] [(-)] [9] [,] [2ND] [L1] [2ND] [L2].
• Press [ENTER].

Calculate IRR:

• Press [APPS] [ENTER] [8].
• Press [(-)] [9] [,] [2ND] [L1] [,] [2ND] [L2].
• Press [ENTER].

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