How to Calculate NPV on the BA II Plus
Net present value lives in the cash-flow worksheet: CF0 today, then C01, C02, … each with a frequency F. One discount rate I (per period) and [CPT] [NPV] finishes the job.
Step by step
- 1
Open and clear the CF worksheet
Start clean so old flows cannot leak into your answer.
[CF][2ND][CLR WORK]
- 2
Enter CF0
The time-zero amount — usually the investment, negative: 1000 [+/-] [ENTER].
1000[+/-][ENTER]
- 3
Enter each flow and its frequency
[↓] moves to C01; type the amount, [ENTER]. [↓] again shows F01 = 1 — change it only when a flow repeats: 3 [ENTER] means “three periods in a row”.
[↓]600[ENTER]
- 4
Open NPV and store the rate
[NPV] shows I = 0. Enter the per-period rate as a whole percent: 10 [ENTER].
[NPV]10[ENTER]
- 5
Compute
[CPT] returns NPV. Positive = the project beats the discount rate; negative = it falls short.
[CPT]
Worked example (T5): NPV = 41.32
Invest 1,000 today (CF0 = −1000), receive 600 at the end of each of the next two years, discount at 10%: NPV = 41.32. With frequencies (T14): −25,000, then 7,200 three times (F01 = 3), then 9,500 at 8% → NPV = 537.88.
[CF][2ND][CLR WORK]1000[+/-][ENTER][↓]600[ENTER][↓][↓]600[ENTER][NPV]10[ENTER][CPT]
Web practice cannot replace the physical calculator in a proctored exam — only calculators on the exam organizer’s current list are allowed.
Frequently asked questions
Is the NPV rate I annual or per period?
+
Per period — the CF worksheet has no P/Y. Annual flows take the annual rate; monthly flows take the monthly rate.
How many flows fit?
+
Up to 24 after CF0 on the calculator, each with a frequency from 1 to 9,999 — frequencies are how long lists stay short.
NPV = 0 means what?
+
The flows exactly earn rate I — and that rate is the IRR. Compute it from the same CF data with [IRR] [CPT].