* Make a timeline 55000 $5000 20 years $5000 $18000 $50 000 - 13000 $5K $5K $5K $SK CF Question: A project that expects net returns OE $ 5000 at the end oF every year CFo - $50 00o +/- For 20 years. The cach outlays (Investments) are $ 50.000 today and a second outlay OF $18000 in 3 years. Find IRR For this project. Co $5000 For - 2 4 Coz $ 13 000 +/- FOz - 1 O CO3 $ 5000 FO3 17 O(IRR)(CPT) 4.36% Compound Interest Formula (calculator) (16.3) CF 2nd (CLR WORK) (3) CFo = (+/-) (ENTER) L O Co- (ENTER) For- #oF Co. (ENTER) O Coz - (ENTER) Foz = #OF CO2 (ENTER) Co3 (ENTER) Fo3 1oF Cog (ENTER) %3D * Continue iF more than 3 given cash Floos * (IRR)(CPT)
* Make a timeline 55000 $5000 20 years $5000 $18000 $50 000 - 13000 $5K $5K $5K $SK CF Question: A project that expects net returns OE $ 5000 at the end oF every year CFo - $50 00o +/- For 20 years. The cach outlays (Investments) are $ 50.000 today and a second outlay OF $18000 in 3 years. Find IRR For this project. Co $5000 For - 2 4 Coz $ 13 000 +/- FOz - 1 O CO3 $ 5000 FO3 17 O(IRR)(CPT) 4.36% Compound Interest Formula (calculator) (16.3) CF 2nd (CLR WORK) (3) CFo = (+/-) (ENTER) L O Co- (ENTER) For- #oF Co. (ENTER) O Coz - (ENTER) Foz = #OF CO2 (ENTER) Co3 (ENTER) Fo3 1oF Cog (ENTER) %3D * Continue iF more than 3 given cash Floos * (IRR)(CPT)
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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Transcribed Image Text:* Make a timeline
55000
$s000
$5000
20 years
$5000
$18000
$50 000
$5K
$5K
$5K
$SK
- 13000
CF
Question: A project that expects net returns
$ 5000 at the end oF eveny year
CFo - $50 00o +/-
oF
For 20 years. The cash outlays
Co, -
$5000
(Investments)
Foi
ー2
are $ 50.000 today anda
second outlay oF
18000 in 3 Years.
4) COz -
$ 13 000 +/-
Find IRR For this project.
FOz - |
Co3
$ S000
F03
- 17
O(IRR)(CPT) - |4. 36%
Compound Interest Formula (calculator) (16.3)
CF
2nd
(CLR WORK)
CFo =
(+/-) (ENTER)
Co =
(ENTER) L
For = #oF Coi (ENTER) L
Co2
(ENTER)
= #oF Coz (ENTER)
Co2
(ENTER)
FO3 oF Co3 (ENTER) V
* Continue iF more than 3 given cash Flows *
(IRR)(CPT)
(2)
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