Comments on: How to Find Internal Rate of Return (IRR)

By: tish

tish — Wed, 02 Jun 2010 06:07:42 +0000

Thanks peter. I’m using the ti84 plus and yur 3rd one is perfect for me.
IRR(-135000,{50000,40000,30000,50000}) = 10.07063

what does the {1,1,1,1} represent in this problem?

By: Peter

Peter — Wed, 14 Apr 2010 22:22:14 +0000

To my understandings
IRR(-135000,{50000,40000,30000,50000}, {1,1,1,1}) =10.07063
is the same as:
IRR(-135000,{50000,40000,30000}, {2,1,1,1}) =10.07063
and the same as:
IRR(-135000,{50000,40000,30000,50000}) =10.07063

By: Jacob

Jacob — Mon, 12 Apr 2010 01:54:20 +0000

i’m sorry I’m a little confused on your explanation at the end of the equation that you input into your calculator. where do the 2 1 1 come from?

By: rosa

rosa — Wed, 10 Mar 2010 16:22:54 +0000

I followed the instruction on the top. 135000 investment….. and I get an err: syntax. What am I doing wrong?

By: To Anna

To Anna — Thu, 04 Mar 2010 17:22:13 +0000

hit Apps (purple button) –> 1. Finance, dunno why that guy said 2nd finance.

By: Anna

Anna — Thu, 11 Feb 2010 20:03:20 +0000

I have a TI-83. “Press [2nd][FINANCE]” I can not find the word “Finance” in my calculator. Can someone please help me out! Thanks!

By: Blake

Blake — Thu, 10 Dec 2009 06:08:03 +0000

Thanks guys I have a finance final tomo and need to know how to do this

By: Jason

Jason — Sun, 20 Sep 2009 20:47:29 +0000

PV calculations for NPV and IRR are easier for me if I use STAT EDIT and enter the cash flows under L1. This eliminates all the commas and other brackets it also reduces the chance for error.
For example.. you could list payments of 50k at the end of year 1, 40K at the end of year 2, 30K at the end of year 3, 50K at the end of year 4 under L1. After cash flows are entered quit out and get back in to apps finance IRR then enter… IRR(-135000,L1) to get 10.07%.

L2 can also be used for cash flow frequency.

By: Jay

Jay — Mon, 31 Aug 2009 05:23:37 +0000

Finance Calculations on TI-84

Internal Rate of Return:
irr ( initial cost , cashflow list )

Example: initial outlay on a piece if equipment was $200,000. Over the next 3 years, it generates $50k, $100k, and $150k respectively. The market rate of return is 10%.

Therefore, enter the cashflow generated into a List;
[STAT] > 1:Edit… > Enter the cashflows into the list L1
L1 =
50000
100000
150000

You can plug in L1 into the calculator by pressing…
[2ND] > [STAT] (list) > 1:L1

Your IRR calc should look like this:
= irr ( -200000 , L1 )
= 19.44%

By: Daniel

Daniel — Tue, 04 Aug 2009 04:47:07 +0000

If we were to graph this on a line it may give it more sense (Following the the example and answer your professor provided) :

AMT 0 50000 40000 30000 50000

YR 1 2 3 4 5

The first year yeilded $50,000 the 2nd yr. yeilded $50, 000, the 3rd yr. yielded $40,000.

IRR{-135000,{50000,40000,30000,50000}, {1,1,1,1} =10.07063 or 10.07 %

Resham example:

AMT 50000 50000 40000 30000

YR 1 2 3 4

irr(-135000,{50000,50000,40000,30000},{2,1,1}) =10.86%

I hope this helps.