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annual payments of $20,000 each beginning in 25 years. How much would you be willing to invest today if you desire an interest rate of 9 % ? Solution: Cash-flow key method CFO = 0; CO1 = 0; F01 = 24; CO

annual payments of $20,000 each beginning in 25 years. How much would you be willing to invest today if you desire an interest rate of 9 % ? Solution: Cash-flow key method CFO = 0; CO1 = 0; F01 = 24; CO

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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DONT GIVE ME THAT FORMULA CAUSE IT DOESNT WORK GIVE IT TO ME IN AN EXCEL SHEET OR FORMULA WITH PROOF I WILL MARK IT WRONG. THE RIGHT ANSWER IS BELOW HOW CAN I USE EXCEL Problem 2: You are offered the opportunity to put some money away for retirement. You will receive 6 annual payments of $20,000 each beginning in 25 years. How much would you be willing to invest today if you desire an interest rate of 9 % ? Solution: Cash-flow key method CF0 = 0; CO1 = 0; F01 = 24; CO 2 = 20,000; FO2 = 6; CPT NPV I(9) NPV ($11,340.85) NPV (9%, {0, 0, REP (20,000, 6, 1)}, {0, 24, 6}) {0, 0, REP (20,000, 6, 1)} : =
Transcribed Image Text:DONT GIVE ME THAT FORMULA CAUSE IT DOESNT WORK GIVE IT TO ME IN AN EXCEL SHEET OR FORMULA WITH PROOF I WILL MARK IT WRONG. THE RIGHT ANSWER IS BELOW HOW CAN I USE EXCEL Problem 2: You are offered the opportunity to put some money away for retirement. You will receive 6 annual payments of $20,000 each beginning in 25 years. How much would you be willing to invest today if you desire an interest rate of 9 % ? Solution: Cash-flow key method CF0 = 0; CO1 = 0; F01 = 24; CO 2 = 20,000; FO2 = 6; CPT NPV I(9) NPV ($11,340.85) NPV (9%, {0, 0, REP (20,000, 6, 1)}, {0, 24, 6}) {0, 0, REP (20,000, 6, 1)} : =
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