IRR on TI BA II Plus

Written by:Abraham A.
Location:TI BA II+

With this tutorial on Texas Instruments BA II Plus, you will learn how to find Internal Rate of Return for an annuity with constant and uneeven cash flows

IRR Example with constant cash flows

We will illustrate how you can use TI BA II Plus to find Internal Rate of Return with an annuity that has constant payment. Let's assume Sears Corporation purchased a machinery for $10,000 it will save company $4,000 annually for next 4 years. How do we find the Internal Rate of Return with TI BA II Plus

IRR Step by Step using TI BA II Plus
To Press Display
Set all variables to default 2nd reset enter RST 0.00
Select Cash Flow worksheet. CF CF0= 0.00
Enter initial cash flow. 10000 +/- ENTER CF0= -10000.00
Enter cash flow for years 1 to 4 ↓
↓		 4000
4		 ENTER
ENTER		 C01=
F01=		 4000.00
4
Access IRR IRR IRR= 0.00
Compute internal rate of return ↓ CPT IRR= 21.86
IRR Example with uneven cash flows

A five financial project has an initial cost of $120,000 net cash flows of $30,000 $35,000; $25,000, $37,000 and $45,000 in the next five years. If the required rate of return is 10%, determine the Internal Rate of Return (IRR).

IRR Step by Step using TI BA II Plus
To Press Display
Set all variables to default 2nd reset enter RST 0.00
Select Cash Flow worksheet. CF CF0= 0.00
Enter initial cash flow. 120000 +/- ENTER CF0= -120000.00
Enter cash flow for year 1 ↓
↓		 30000 ENTER C01=
F01=		 30000.00
1
Enter cash flow for year 2 ↓
↓		 35000 ENTER C02=
F02=		 35000.00
1
Enter cash flow for year 3 ↓
↓		 25000 ENTER C03=
F03=		 25000.00
1
Enter cash flow for year 4 ↓
↓		 37000 ENTER C04=
F04=		 37000.00
1
Enter cash flow for year 5 ↓
↓		 45000 ENTER C04=
F04=		 45000.00
1
Access IRR IRR IRR= 0.00
Compute internal rate of return ↓ CPT IRR= 12.48

Related DCF TI BA II Plus tutorials

Following is a list of related TI BA II Plus tutorials that cover other DCF methods used in financial management:
  1. NPV on TI BA II+
  2. Profitability Index on TI BA II+
Location: TI BA II+

IRR Calculator

Developed by:Emma A.
Location:Financial Calculators
IRR Calculator ThinkAndDone.com provides you an online IRR Calculator that calculates internal rate of returns from series of net cash flows and an optional guess rate. The IRR calculator allows you to choose the frequency of cash flows to find an annualized IRR.
Location: Financial Calculators