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BA II Plus: IRR Calculation Step by Step
Exact BA II Plus workflow for calculating IRR from uneven project cash flows.
TL;DR
IRR uses the same cash flow worksheet entries as NPV. After entering CF0, C01, C02, and frequencies, press IRR and CPT.
Formula Reference
IRR definition
0 = sum[CF_t / (1 + IRR)^t]The calculator solves this equation iteratively.
BA II Plus Keystrokes
- CF 2nd CLR WORK
- Enter CF0 and each cash flow
- Check Fnn values for repeated cash flows
- IRR CPT
Worked Example
- Using CF0 = -100,000, C01 = 30,000, C02 = 40,000, C03 = 50,000.
- Press IRR CPT.
- Result: IRR is about 12.04 percent.
Common Mistakes
- Ignoring multiple-IRR risk when cash flow signs change more than once.
- Using IRR as the ranking rule for mutually exclusive projects.
- Not checking whether the displayed answer is a percent.
Related Guides
- NPV and IRR Calculations for CFA Level I - Capital budgeting guide for net present value, internal rate of return, and BA II Plus cash flow worksheet inputs.
- BA II Plus: NPV Calculation Step by Step - Exact BA II Plus keystrokes for net present value with a worked capital budgeting example.
- Time-Weighted vs Money-Weighted Return - Compare TWR and MWR with formulas, examples, and CFA Level I interpretation rules.