![]() ![]() Now, press CF then 0 Enter down arrow, 100 Enter down arrow (twice), 200 Enter down arrow (twice), 300 Enter down arrow (twice), 400 Enter down arrow (twice), and finally 500 Enter down arrow (twice). For now, just accept the default frequency of 1 each time. The calculator will prompt you to enter each cash flow and then the frequency with which it occurs. Again, we must clear the cash flow registers first. In this case we need to press CF 2nd CE/C (note that pressing 2nd FV will have no effect on the cash flow registers). All we need to do is enter the cash flows exactly as shown in the table. We could solve this problem by finding the present value of each of these cash flows individually and then summing the results (the principle of value additivity). How much would you be willing to pay for this investment if your required rate of return is 12% per year?
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