How Do You Calculate Net Present Value On A TI-83 Plus?
In the world of finance, the time value of money is one of the most important concepts one can learn. It is the basis behind calculating Net Present Value (NPV). Used primarily for capital budgeting, net present value is the difference between the present value of future cash flows and the present value of the initial investment. Determining the NPV on the TI-83 Plus is easy if you know the right inputs. Determine future cash flows. Future cash flows are the amounts that the investment will pay out at the end of each year. Future cash flows are considered inflows so they are positive values. Calculate the initial cost of the investment. This is the initial investment amount and is paid at the beginning of the first year of the investment’s life. The initial cost is considered an outflow of cash so it is shown with a negative value. Determine the number of periods in the investment. This is usually the number of years you will be receiving cash flows from the investment. For instance, i
