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Unformatted text preview: one , 2 million at year two , and 3 million in year ree s it worth it? three . Is it worth it? NPV NPV = + 5/(1+0.05)^1 + 2/(1.05)^23/(1+0.05)^3 Sample Problem 2 Lets say I want to retire a millionaire at the age of 60. Suppose Im 23 right now. How much do I need to place in a ROTH IRA every ar in order to retire, at 21.84%? year in order to retire, at 21.84%? Payback Period Payback Period Payments over time T. R = interest rate Payback Period Payback Payments over time T. R = interest rate Discounted Payback Period Discounted Payback Payments over time T. R = interest rate IRR Internal Rate of Return Payments over time T. R = interest rate...
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 Fall '11
 MelihaBuluTaciroglu

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