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Net Present Value NPV with TI 84 Plus

Net Present Value NPV with TI 84 Plus
Net Present Value NPV with TI 84 Plus

pNet Present Value NPV with TI 84 Plusp phi everybody today were going to be going over net present value calculated with a Texas Instruments ti84 plus now the process is going to be pretty much the same with a ti83 ti83 plus and a ti84 because well the finance app doesnt really change so you should be able to do this with all the other platforms as well lets just jump right into it now our problem is our we have a discount rate of 9 we start out paying for the project 54, 000 and then were going to get were going to get cash flows once a year for the next three years and those three years are going to be the expected cash flows will be twenty one thousand fourteen thousand and twenty three thousand four hundred so how whats the net present value of all of that and as you can see down here Ive already calculated it out its going to be negative for 881 how did we get there lets go to the calculator so weve got our calculator and were going to go into our apps menu were going to use the finance calculator here as you can see down here at the bottom number seven is NPV thats were going to what were going to be using we can just hit seven and go straight into it so whats the formula the formula for NPV on this on this finance calculator is going to be the discount rate how much we spend then how much we how much the cash flows are and then how many periods there are per year everything is going to be separated by commas so were going to be hitting this little button right here a lot lets go with our lets go with our formula here so nine percent were just going to hit our nine then were going to separate that by our comma the next part is going to be how much we spend now its very important that you dont confuse this subtract button with this negative button if you use the subtract button you will get an error at the end and it wont be very descriptive so yeah good luck with that all right so well start with our sub R with our negative button here and then were going to say how much we spent thats 54, 000 and comma to go to the next section the next section were going to be putting in all three of those cash flows and were going to put them into curly braces so that you know the calculator knows that everything is in in there is is the same thing so second and then right here this little blue curly brace right over the opening parenthesis and now you can see we have our curly brace so Im going to go with 21, 000 separate by comma 14, 000 comma 23 400 and then well second and close the curly braces and separate by a comma once again now this next part were basically just going to be saying how many periods there are per year were going to go simple and say that theres one per year now we will have to put in a 1 for each corresponding year so well hit our our second here well start another curly brace and well do 1 comma 1 comma 1 and then second and close curly brace and thats it hit the enter key and weve got our answer and the answer in this case is negative 4 881 0.33 1 6 1 5 and thats the whole process guys its real simple so just do that you know 5 6 10 million times and and youll get it all right well thanks for coming to the channel and obviously if you liked what you saw hit subscribe this is kind of a general channel so yeah subscribe for all kinds of crazy stuff alright peacep

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