Appendix B: Reference Information 639
Cash Flow
Cash FlowCash Flow
Cash Flow
where:
Net present value is dependent on the values of the initial cash flow (CF0), subsequent
cash flows (CFj), frequency of each cash flow (nj), and the specified interest rate (i).
irr() = 100 × i, where i satisfies npv() = 0
Internal rate of return is dependent on the values of the initial cash flow (CF0) and
subsequent cash flows (CFj).
i=I% ÷ 100
Interest Rate Conversions
Interest Rate ConversionsInterest Rate Conversions
Interest Rate Conversions
4Eff =
where: x=.01 × Nom ÷ CP
npv( ) CF0CFj1i+()
-Sj1– 11i+()
-nj
–()
i
-----------------------------------
j1=
N
∑
+=
Sjni
i1=
j
∑j1≥
0j0=
⎩
⎪
⎪
⎨
⎪
⎪
⎧
=
100 (eCP x 1+()ln×1)–×